Gen H has updated its income booster mortgage criteria to allow boosters to live in the property they help purchase.
The change follows feedback from the lender’s broker panel and brings the policy in line with wider market practices.
The income booster model allows individuals to be named on the mortgage without being listed on the property deed, helping buyers increase their borrowing capacity. Under the revised policy, those acting as income boosters will be required to obtain independent legal advice and sign an occupancy waiver if they choose to reside in the property.
EVOLVING CRITERIA FOR INCOME BOOSTERS
Gen H introduced the income booster product in 2020 to support a range of buyers, including first-time purchasers, home movers, and remortgagers. Initially, only close family members could act as income boosters on mortgages up to 95% loan-to-value (LTV). In 2024, the lender expanded eligibility to include friends, although this was limited to mortgages up to 80% LTV.
The latest update is expected by Gen H to make the scheme accessible to a wider range of borrowers, including families purchasing homes together. Gen H’s income booster proposition includes the Ejector Seat feature, which allows the removal of income boosters before they reach 85 years of age, provided the mortgage remains affordable at that stage.
IMPACT ON FIRST-TIME BUYERS
The policy change comes amid shifting trends in financial support for first-time buyers. Data reported by The Times, using research from mortgage broker Tembo, indicates that the volume and value of cash gifts from family members to support home purchases declined in 2024.
At the same time, both Gen H and Skipton Building Society have reported an increase in mortgage applications involving income boosters. This suggests that structured affordability solutions, such as the income booster model, are playing a growing role in helping buyers onto the property ladder.
BROKER FEEDBACK INFORMS CHANGES
Karen Appleton, head of lending at Gen H, said that the decision to update the policy was influenced by broker feedback.
She added: “Income booster has opened doors not only for aspiring first-time buyers but also for home movers and remortgagers after a life change. It’s a powerful tool that we hope will now have an even greater impact as a result of this policy update.
“As always, our brokers are our best bellwether for changes such as this one – they’ve told us what their clients need and we’re glad to deliver.”
The revised policy is now in effect, with Gen H continuing to review its mortgage criteria in response to market conditions and borrower needs.
