Gen H has changed its income booster criteria so income boosters can live in the property they help to buy.
The income booster product allows someone’s income, including retirement income, to be added to a borrower’s mortgage to boost affordability. They are not added to the property deed.
Income boosters will have to secure independent legal advice as normal, and if they want to live in the property, they will need to sign an occupancy waiver.
Gen H launched the product in 2020, and initially only close relatives could be income boosters on deals up to 95% loan to value (LTV).
This criterion was expanded to allow friends to act as income boosters up to 80% LTV, and the ejector seat was added to allow the removal of income boosters before they turn 85 if the mortgage is affordable at that point. The latter allows for a longer mortgage term.
The lender said that since the product was launched, it has supported thousands of applications, and noted that the update would support even more families, including generations wanting to buy together.
How the housing landscape is set to shift
Sponsored by Halifax Intermediaries
Karen Appleton, head of lending at Gen H, said: “Income booster has opened doors not only for aspiring first-time buyers but also for homemovers 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 lender recently announced a forward-flow funding arrangement with Penrith Building Society.
The firm has also partnered with L&G and Rightmove to launch a property decisioning engine.
