This will be in the form of savings cash over a two-year period which Generation Home will use to lend to mortgage customers.
The forward-flow funding will allow Generation Home to accelerate the rollout of its mortgage products to prospective buyers and remortgagors.
Nottingham Building Society is Generation Home’s first mutual funding partner. This will allow the lender, which began trading in October 2020, to continue its lending growth.
It offers two kinds of mortgage products; one where people act as a guarantor for a homeowner and make optional payments on the mortgage and the other where a person provides a gifted deposit in exchange for equity in the property.
Generation Home, also known as Gen H, launched Gen H Legal in October to provide conveyancing services to its customers.
‘Re-building the home-buying process’
William Rice, CEO of Generation Home, said: “At Gen H, we believe that owning a home should be an opportunity for everyone. That’s why we’re rebuilding the home-buying process to make it simple, transparent and fair.
“Our partnership with The Nottingham is a crucial step in our journey; its mutual ethos and 170-year legacy of supporting people to own their own home is a great fit with our mission.”
Sue Hayes, CEO of Nottingham Building Society, added: “We are delighted to partner with Generation Home. Our shared purpose and the depth of cultural alignment across our businesses provide us with a unique platform for success. They present a unique proposition that, with our support, can enable home ownership to become a reality, rather than a dream.
“Mutuality is the bedrock on which the society has been run since its inception, and we are proud to be partnering with a business that shares our resolute determination to help people own their own home. This matters now, more than ever.”
Last week, Mortgage Solutions reported that Generation Home has received an undisclosed Series B funding round from Legal & General.