Gen H broadens income booster eligibility

Published on

Gen H will now accept nieces, nephews and friends as ‘income boosters’.

Friends can act as income boosters on mortgages up to and including 80% LTV.

Family, now including nieces and nephews, can act as income boosters on mortgages up to and including 95% LTV. The full list of eligible family members includes:

  • parents (including step-parents),
  • children (including step-children),
  • grandparents,
  • siblings (including half-siblings and step-siblings),
  • uncles and aunts (siblings of parents only), and
  • nieces and nephews.

Income boosters go on a mortgage with owners to boost what they can borrow – a structure commonly known as a joint borrower, sole proprietor (JBSP) mortgage. But unlike typical JBSP mortgages, Gen H’s income booster includes a calculation which can remove the booster at age 85, meaning the booster’s age won’t limit the mortgage term. This enables borrowers with older boosters to still achieve the 30 or 40-year mortgage term they may need to afford the mortgage.

A review of Gen H’s recent cases found that 62.4% of owners with income boosters are under the age of 40, but a significant proportion (37.6%) are over 40, with 16.4% over 50. Furthermore, in the five months following November 2023, 72.9% of income booster apps were from first-time buyers and 24.7% were remortgagers, representing a 50% uplift in remortgages with income boosters.

Will Rice, Gen H CEO, said: “We’ve seen how many people our income booster product has been able to help. This is why, when our brokers began requesting that friends be able to act as income boosters, we took note. I’m delighted to introduce this change, especially in light of two consecutive rate reductions, because it means we’ll be able to support even more aspiring homeowners.

“This important development is thanks to the attention and advocacy of our broker partners.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Santander customers overpay mortgages by £894m

Santander UK customers overpaid their mortgages by more than £894 million in the first...

The Mortgage Lender cuts buy-to-let rates and brings back 75% LTV deals

The Mortgage Lender has reduced buy-to-let rates by up to 0.35% and relaunched selected...

Paradigm adds Afin Bank to lender panel

Paradigm Mortgage Services has added Afin Bank to its lender panel, giving member firms...

Air supports Linear move into later life lending

Air is supporting Linear Financial Solutions as the Primis Mortgage Network firm launches into...

Yorkshire Building Society staff to climb Snowdon for charity

More than 200 Yorkshire Building Society colleagues are preparing to climb Snowdon overnight to...

Latest publication

Other news

Santander customers overpay mortgages by £894m

Santander UK customers overpaid their mortgages by more than £894 million in the first...

The Mortgage Lender cuts buy-to-let rates and brings back 75% LTV deals

The Mortgage Lender has reduced buy-to-let rates by up to 0.35% and relaunched selected...

Paradigm adds Afin Bank to lender panel

Paradigm Mortgage Services has added Afin Bank to its lender panel, giving member firms...