Generation Home launched in October 2020, and offers a range of products which tap into the support on offer from family members in order to avoid affordability problems, as well as support borrowers who struggle to build a deposit.
The lender tracks monthly contributions from the primary owners and their supportive family members, which are then reflected in individual home equity stakes. The idea is that everyone can then see how much they have paid, and how much they therefore own in the property, in real time.
Danny Belton (pictured), head of lender relationships at Legal and General Mortgage Club, said with house price growth outstripping increases in earnings, first-time buyers needed “innovative mortgage options” that remove the barriers to ownership.
He continued: “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.
William Rice, CEO at Generation Home, added: “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 and 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.”