The lender said the name would “highlight exactly what the product is and encourage aspiring homeowners to find out more about it and see if it is a viable option that they may have not realised before”.
Recent research by the lender showed that 60 per cent of first-time buyers worry their lack of understanding is delaying them getting onto the property ladder and over half said that they feel they may miss out on a better deal as they do not understand different mortgage types.
The income booster product allows up to three extra people onto the mortgage without making them a property owner. As their income is also included for affordability, it increases the amount a first-time buyer can borrow.
For example, someone with an income of £25000 could only borrow £112,250 on their own based on an income multiple of 4.49x.
Adding on another borrower with a £25,000 income this goes up to £224,5000.
Jennifer Lloyd (pictured), head of mortgages and propositions at Skipton, said: “At Skipton we want to cut down on the jargon and help first-time buyers to be aware of all the options available to them. Which is why we are renaming the joint borrow sole proprietor mortgage – simplifying the name to income booster, highlighting exactly what this product is about and to encourage prospective first-time buyers to find out more about it.
“We understand the challenges facing first-time buyers, and we are committed to simplifying the process. Our goal is to empower every individual to make informed decisions, ensuring that the dream of home ownership can become a reality.”
Lloyd said getting onto the property ladder was “increasingly challenging” and financial assistance was often essential for this cohort of borrowers.
“We want more people to be aware of the options that are available to them such as the Income Booster scheme, which increases the amount able to borrow through assessing the main applicant’s income along with the income of up to three friends or family, which means potential home buyers could borrow more, allowing a scope of more properties or making that first step onto the ladder easier for first-time buyers,” Lloyd added.
Alternative lender Gen H launched to market with a product that allowed the incomes of family members to be added to a first-time buyer’s mortgage, which it called an income booster.
William Rice, CEO Of Gen H, said: “When we started lending in 2020, there was a clear need in the market for a reimagined JBSP mortgage. First-time buyers needed more help onto the ladder, and the guarantor or joint mortgages available often prevented families from providing enough support.
“That’s why we created the income booster – a distinct, reimagined type of mortgage designed to help families lend more flexible support which benefits everyone.”
He continued: “Like Gen H, Skipton has long been committed to innovating in the mortgage industry, and we’re glad to be working alongside them to create the change aspiring homeowners so desperately need – from designing new kinds of mortgages to eliminating unnecessary jargon from the process.
“It’s time for mortgages and homeownership to be simple, transparent, and fair, and we back Skipton as they continue to innovate and keep homeowners at the heart of what they do.”
