Getting a mortgage to buy a home might not be as difficult as you think. We asked the experts at Generation Home for some ideas
The rate of home ownership among young people has reduced by a third since 1990. But they aren’t necessarily going to be part of ‘generation rent’ for ever – there are new way to obtain mortgages that are aimed at first-time buyers or those who want to take a step up the property ladder. The experts from Generation Home explain.
What types of mortgages do Generation Home offer?
We offer residential mortgage in England and Wales. (No buy-to-let mortgages)
We offer capital repayment mortgages. That means your monthly payments are made up of both interest and loan repayments.
Our advisors will help you select the best product for you depending on your circumstances and personal preferences.
If you crave stability, we offer fixed-rate mortgages in which where your payment stays the same for 2, 3 or 5 years. After your fixed rate ends you are able either switch to another fixed rate product or remain on the standard variable rates. Your options will depend on your circumstances at the time. We’ll be in touch to assist and discuss your choices!
If you think the base rate may change, you can opt for a tracker mortgage, and potentially make some savings.
The advice meeting is an important time to raise questions and consider your financial plans and commitments.
How can I calculate how much I could borrow?
Visit our website generationhome.com and complete a Mortgage-in-Principle to see what we could offer you. This is fast, free and doesn’t commit you to anything.
To provide you with a home-buying budget, we need to understand your buying group and everyone’s financial situation. Therefore, we ask about your income, expenses, any credit card balances, your credit health and your deposit.
How does the Income Booster work?
An Income Booster can be added to the mortgage to increase the borrowing power of the buyers. We created it as a way to help get buyers started on the property ladder with the view that they could be removed down the line when the homeowners remortgage.
Income Boosters go on the mortgage and are equally responsible and liable for it. However, they are not on the property deeds.
Income Booster can contribute to mortgage repayments and build up a stake in the property if they so choose, or simply be on standby if the homeowners ever need a helping hand.
Generation Home allows up to six people on the mortgage.
How does the Deposit Booster work?
The Deposit Booster product is our alternative to gifting. Family or friends can contribute to the deposit in return for a financial stake in the property.
There are two ways to structure this interest-free loan:
What we call a deposit loan means that if a Deposit Booster provides a £5,000 to buy a home, they expect to get back £5,000.
What we call an equity loan gives the Deposit Booster the financial exposure of a homeowner. If they provide £5,000, their loan balance increases or decreases depending on the property value.
Generation Home provides the legal structure to protect the Deposit Booster’s interest and manage repayment of the loan.
Deposit Boosters can convert some or all of their loan into a gift at any point.
Do I have to have a face-to-face interview to apply for a Generation Home mortgage?
No, you can apply for a mortgage online and speak to our advisors on the phone or on a video call.
You will also have a home-buying champion to answer questions as they arise and just generally guide you through the process.
How do you determine loan amounts?
The amount you can borrow is determined by your deposit, income and expenditure. We also look at your credit score and credit behaviour when making a lending decision.
Where can I get mortgage advice and guidance on conveyancing?
From us! We have a team of in-house advisors who can give you free mortgage advice. We’ve also partnered up with Juno Conveyancers who can take charge of the legalities for you should you opt to use them.
How can I find out more about Generation Home mortgages?
Visit our website generationhome.com for more information on who we are and how we can help. You can start your application via the your customer dashboard and speak to one of our mortgage experts to begin your home-buying journey.
We are obliged to say your home will be repossessed if you do not keep up repayments on your mortgage.