Legal & General Mortgage Club has expanded its proposition with the addition of Generation Home to its lender panel.
Generation Home is a new fintech mortgage lender helping aspiring buyers to purchase a better home, sooner. The addition will give the Club’s network of advisers’ access to a wider range of mortgage products suitable for clients looking to take their first steps onto the property ladder.
Generation Home launched in October 2020 and offers a range of flexible products that harness family support to solve widespread affordability and deposit challenges. It claims they make the Bank of Mum & Dad accessible to more people by offering security and transparency to families who want to lend a hand.
Its Income Booster product provides more flexible ways to borrow and own together. It increases a customer’s borrowing power by 62% on average.
Meanwhile, its Deposit Booster product lets families play help-to-buy, co-investing alongside their loved ones and increasing the deposit funds available to homebuyers by 66% on average.
With Generation Home, 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.
There is no impact on stamp duty status for first time buyers.
Danny Belton, head of lender relationships at Legal & General 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, Generation Home, added: “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.”
