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

Meet the hosts of Mortgage’s Got Talent

As the mortgage industry prepares to swap case discussions, criteria and rates for microphones,...

Complex income must not become barrier to Scottish homeownership

Mortgage lenders need to keep adapting their criteria as changing working patterns leave growing...

LiveMore raises LTV limits and adds flexibility to equity release overpayments

LiveMore has increased maximum LTVs on mortgages with a repayment element and introduced more...

Cost of collapsed property sales rises to £258m in second quarter

Failed property transactions cost the UK housing market an estimated £257.9m during the second...

New-build homes account for 8% of properties on the market

New-build homes make up just 8.1% of properties currently listed for sale across Great...

Latest publication

Other news

Meet the hosts of Mortgage’s Got Talent

As the mortgage industry prepares to swap case discussions, criteria and rates for microphones,...

Complex income must not become barrier to Scottish homeownership

Mortgage lenders need to keep adapting their criteria as changing working patterns leave growing...

The fall in BTL company formations isn’t the whole story

It is often the case with housing and mortgage market data that the headline...