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

Mortgage industry cycle challenge raises £26k for children and homelessness charities

Mortgage industry leaders have raised £26,002 for two charities after cycling 472 miles from...

MTD pressure prompts 22% of landlords to consider quitting

More than one in five UK landlords have considered leaving the rental market as...

Virgin Money cuts new business rates and ups buy-to-let PT rates

Virgin Money is to reduce a range of purchase and remortgage fixed rates while...

TMG adds Handelsbanken to mortgage lender panel

TMG Mortgage Network has added Handelsbanken to its lender panel, giving advisers access to...

Landlord refinancing returns to record levels as fixed-rate deals expire

Buy-to-let refinancing has returned to a record high as landlords respond to the expiry...

Latest publication

Other news

Mortgage industry cycle challenge raises £26k for children and homelessness charities

Mortgage industry leaders have raised £26,002 for two charities after cycling 472 miles from...

MTD pressure prompts 22% of landlords to consider quitting

More than one in five UK landlords have considered leaving the rental market as...

Virgin Money cuts new business rates and ups buy-to-let PT rates

Virgin Money is to reduce a range of purchase and remortgage fixed rates while...