Residential mortgage lender Gen H has launched in Scotland, extending its lending proposition north of the border with a focus on boosting borrowing power for first-time buyers.
The lender’s entry into the Scottish market includes its income booster proposition, which allows borrowers to add a family member or friend as a non-resident co-borrower in order to improve affordability.
The move is aimed at addressing a long-standing challenge for Scottish advisers: borrowers who can afford monthly repayments, often evidenced by high rental payments, but who fall short under traditional income-multiple assessments.
Under the income booster structure, additional borrowers are jointly liable for the mortgage but do not act as guarantors and do not place collateral at risk.
Gen H said boosters are not required to make payments provided the mortgage remains in good standing, adding that the vast majority do not contribute financially.
The lender also said that, on average, first-time buyers using an income booster are able to purchase a home five years earlier than those who do not.
The proposition is positioned as an alternative to guarantor mortgages, gifted deposits and more complex family arrangements, which can be difficult to structure and explain. Gen H said the model is particularly relevant in markets where rental costs already demonstrate repayment affordability.
The Scottish launch will initially be available exclusively through Mortgage Advice Bureau brokers, reflecting Gen H’s intermediary-led distribution strategy.
Sara Palmer, sales and distribution director at Gen H, said: “We hear a lot about the housing crisis in England, but affordability is one of the most pressing challenges facing aspiring homeowners in Scotland too.
“Many people can afford the monthly repayments — often paying as much in rent — yet are blocked by traditional income assessments.
“By launching in Scotland and bringing income booster to the market, we’re giving brokers a practical way to help more clients buy sooner, while ensuring family support can be used in a transparent, safe and fair way.”
Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, added: “It’s fantastic to see the mortgage market evolving across Scotland, an area that has been underserved by new lending propositions for too long.
“Having listened carefully to broker feedback, the need for a proposition that truly addresses the needs of Scottish clients is in high demand.
“A critical gap identified was the lack of flexibility, particularly around enhanced borrowing power options. This is exactly where Gen H comes in. Their highly anticipated launch into the Scottish market is specifically designed to fill that gap.
“This partnership enables us to support Scottish businesses and their clients directly, and we’re incredibly excited to be launching this exclusively to MAB brokers.
“We strongly encourage other lenders to join us in adopting a more flexible, client-focused approach to better serve the Scottish property market.”
