With New Build Boost, the boost is always 15% of the purchase price of your home.
After 5 years, it will step up or down in line with the value of your property. So if your boost is outstanding, and the value of your property has gone up, you would have to repay more than you originally borrowed.
So let’s assume you don’t pay off your boost for ages – how big could it grow over time?
Value of the property | House price growth | Your equity | Value of the boost |
£200,000 | 0% | £170,000 | £30,000 |
£250,000 | 25% | £212,500 | £37,500 |
£300,000 | 50% | £255,000 | £45,000 |
£350,000 | 75% | £297,500 | £52,500 |
£400,000 | 100% | £340,000 | £60,000 |
£450,000 | 125% | £390,000 | £60,000 |
£500,000 | 150% | £440,000 | £60,000 |
£550,000 | 175% | £490,000 | £60,000 |
To protect you, we ignore any increases in the property's value above 2x. This means you won't ever have to pay back more than twice your original boost.
In the first example above, because you borrowed £30,000 to begin with, you’d never have to repay more than £60,000, no matter how much the value of your property goes up.
This only pertains to your boost, not your main mortgage. There’s no way to predict or guarantee that the value of your home will go up, and you’ll have to make your mortgage payments as normal.