"Because this is such a meaningful step forward in the journey to developing innovative lending solutions for future generations, I have every confidence that this will be a welcomed addition by our adviser community."
Generation Home launched in October 2020 and offers joint borrower sole proprietor mortgages, allowing family or friends to provide deposit support by way of an equity loan.
Its Income Booster product increases a customer’s borrowing power by 62% on average and its Deposit Booster option increases deposit funds by an average of 66%.
With both products, there is no impact on stamp duty status for first-time buyers.
The monthly contributions from owners and their family members are automatically tracked and reflected in individual home equity stakes, so everyone can see how much they have paid and what they own in real time.
Danny Belton, head of lender relationships at L&G Mortgage Club, said: “We know that because house prices significantly outstrip average earnings, those wanting to step onto the property ladder need innovative mortgage options that help to reduce the barriers to owning a home. Generation Home’s proposition is therefore well timed and likely to support many people to press ahead with their dreams of owning a home of their own.
“Because this is such a meaningful step forward in the journey to developing innovative lending solutions for future generations, I have every confidence that this will be a welcomed addition by our adviser community. I would urge them to speak with us, or Generation Home, to explore how these products work and just who they can help."
William Rice, CEO of Generation Home, commented: “Homeownership has moved out of reach for millions of young people, denying them the financial security that previous generations have taken for granted.
“Through our products, not only are we providing better ways for families to lend a hand but also making it possible for millions to do this where they couldn’t before.
“We believe that the mortgage advice community will play a critical role in educating future Generation Home customers about the benefits of our proposition. This is where our partnership with Legal & General Mortgage Club is key to our success. As the UK’s leading Club, we’re gaining access to a broad and engaged community of brokers, that we look forward to working with.”