Generation Home provides better ways to buy with support from family. Family or friends can provide deposit support by way of an equity loan, and income support by going on the mortgage (up to 6 incomes).
- The new lender is pioneering better ways to purchase a home with support from family, solving common income and deposit challenges. Its fractional ownership platform delivers increased borrowing power, security of funds, flexibility and a hassle-free way to buy together.
- Generation Home products are currently exclusive to the L&G mortgage network.
Homeownership has moved out of reach for millions of people, denying them the financial security that previous generations have taken for granted.
Generation Home was founded by husband and wife duo Will Rice and Sophia Guy-White to change this, with a mission to help everyone become a homeowner. By distributing Generation Home product through intermediaries via the Twenty7Tec platform, the new lender is making homeownership available to more people.
From the founder
Founder and CEO Will Rice said:
“Independent advice is incredibly important to first-time buyers. As Generation Home takes its first steps towards opening up fully to intermediaries, working with Twenty7Tec will mean that more intermediaries can find, access and obtain a Generation Home mortgage for their customers.”
“We know from working with intermediaries that Twenty7Tec is an invaluable tool for them to source products and therefore serve their customers better.”
Nathan Reilly, Director of Lender Relationships at Twenty7Tec added “Based on data available through our INSIGHT module, joint borrower, sole proprietor was the most searched piece of criteria during September. This clearly underlines the challenge affordability still presents for many first-time buyers and the market as a whole, so it’s encouraging to see Generation Home tackling this issue head on and working with intermediaries to help more customers take their first step onto the property ladder”
- Deposit support by way of an equity loan is secured by Generation Home’s first charge.
- This loan is administered on their behalf by Generation Home at no cost and it is Generation Home that takes responsibility for the repayment of funds to the parents upon a sale of the property, at remortgage, or once the homeowner’s equity in the property reaches a pre-agreed level.
- Customers choose whether the value of their loan will reflect changes in the house price, but it is not interest-bearing.
- A loan can be converted into a gift at any time – in whole or in part – through the Generation Home platform.
There are no Stamp Duty implications for the first-time buyer or their deposit helper (a “deposit booster” in Gen H parlance), meaning that the first-time buyer preserves their tax-free allowance up to £300,000 and pays a discounted rate between £300,000 and £500,000.
- Family members can go on the mortgage together with the homebuyer, a Generation Home feature called the “income booster”.
- How mortgage repayments are divided is up to the borrowers and the booster may just be on standby to help.
- Importantly, the booster can earn home equity in exchange for any mortgage repayments they make.
The ability for the booster to earn home equity is powered by Generation Home’s fractional ownership platform. Homeowners and their boosters can hold fractional stakes in a home and have their individual stakes updated in real-time in response to their mortgage repayments.
Compelling service and value
- Applications are digital and each customer benefits from a customer champion who provides personal support from beginning to end of the home-buying process.
- Generation Home does not charge fees for any of its services beyond the normal cost of the mortgage.
- Interest rates are competitive with the high-street lenders across a range of first-time buyer product categories.