If you are looking to arrange a mortgage, but feel as though you need additional help, support might be on offer from a new mortgage lender. Generation Home aims to assist buyers in a fresh way, allowing friends or relatives to also “boost” their savings and invest in the property.
Sophia Guy-White is one of the founders of Generation Home, alongside her husband Will Rice, and she said; “When we spoke to banks, we discovered they would not consider us as a group. They only wanted to assess us a married couple. So, we began thinking about how we could offer a solution to young people like ourselves that would empower them to be able to afford more by collectively pooling together with friends and family.”
Will Rice added; “I think we’re doing the world’s first Insta-mortgages. We have taken people from clicking through an advert on Instagram, all the way to now owning a house which is pretty exciting. While we have our own in-house advisers, we also understand that independent advice is really important to customers, particularly to first-time buyers. We’re being very careful about who we partner with. We want to ensure that there’s a really high quality of advice provided by that third party.”
Help from friends and family makes a massive difference
It is likely many people will be interested in how the “home booster option” enables the income of friends or family members to positively impact on the mortgage application.
The named additional party or people can make additional payments to support the applicants, or they can be on standby in case an issue arises.
Rice explains: “Our research has found that over 60 per cent of parents would be willing to provide greater deposit support to their children if they were able to invest alongside them with a view to getting the funds back at a later date. Their investment amount was more than double their proposed gifting amount. Our deposit booster lets you do this. We provide the legal framework, securing your investment against the property and acting as your agent for the return of funds.”
Homebuyers are already benefitting from this lending option
The first customers who arranged a mortgage in this manner were a couple called Sebastian and Liv. They were toiling to raise a deposit for property in London, but through the use of Generation Home, they received help and managed to invest in a property they eventually purchased.
Sebastian explains; “Generation Home creates a framework which removes the risk to both yourself and your friends who invest. Yes, it may not offer the absolute best rates, but it’s competitive, and the ‘deposit booster’ is the big game changer because it removes the awkward conversations and side deals that would otherwise be required. For the home investor, they know their money is safe, while we as a recipient felt better about it because we don’t feel like we have taken advantage of anyone.”
Andrew Montlake is a mortgage broker at Coreco, and he said; “With the widespread withdrawal of 90 per cent mortgages the outlook for first-time buyers is quite bleak at the moment. Especially at a time when they would want to be making the most of the stamp duty holiday. It’s a nice concept and it’s actually pretty easy to understand once you arrive on its website. It’s trying to help people onto the property ladder. It has taken an innovative and inspiring approach during a time when other mainstream lenders are struggling to service first-time buyers.”
Anyone looking to arrange informed and up to date guidance regarding a mortgage should speak with an experienced professional.