Innovative building societies and specialist lenders are breaking down FTB barriers – Tipton and Coseley BS

Innovative building societies and specialist lenders are breaking down FTB barriers – Tipton and Coseley BS

What’s more, a lack of supply in the housing market only adds to the pain being felt by first-time buyers. As a result, they are now required to save more towards a deposit, search longer and harder for their dream home and budget for higher running costs, making it an even greater challenge to take that first step onto the property ladder. 

Against this backdrop, first-time buyers still hold an important place in the market with specialist lenders and building societies determined to support them through a combination of innovation and common-sense led approaches. 

  

Innovative solutions 

Research has shown that during 2021, 56 per cent of first-time buyers received family support, without which they wouldn’t have been able to have purchased their property. This is not a new theme in the market, and over the past few years, a number of lenders have introduced no deposit mortgage options, such as the Tipton’s Family Assist product.

This type of product enables borrowers to purchase a property with little or no deposit.  

With family assisted type mortgages, the borrower must still be able to pass affordability checks in their own names. However, there is still the option for joint borrower sole proprietor (JBSP) mortgages, where a family member can be party to the mortgage for affordability assessments when they are not planning on living at the property. 

Alternatively, where a family member isn’t in a position to support, new private equity loan providers are coming to market with the aim to aid borrowers in raising or boosting their deposit.   

Examples include Proportunity, Ahauz and Even which are equity loan providers showing real innovation in the market to help first-time buyers.  

Typically, they allow borrowers to gain mortgage finance with a smaller cash deposit but avoid high loan to value (LTV) interest rates. Borrowers are required to deposit a minimum of five, with up to a further 15 per cent being provided by the equity loan providers. This qualifies borrowers for an 80 per cent LTV product, typically with lower rates than a standard 95 per cent LTV product would offer. 

  

Manual underwriting 

Many regional building societies still offer manual underwriting, which is a key component to helping and understanding the particular circumstances of first-time buyers. This approach allows underwriters to look at the bigger picture and get a balanced view on a client’s ability to repay the mortgage they are applying for.

Rather than automated computer decisions based on credit scores, manual underwriters can individually assess a borrower’s credit history to understand how best to support them.  

This common sense-based approach can be particularly helpful for first-time buyers who may not have built a high credit score, due to lack of credit. 

With increasing product innovation now available in the first-time buyer market, it feels even more of an opportunity for building societies and specialist lenders to continue to focus and share what they can do in this space, which ultimately results in the fantastic outcome of someone owning their first home. 

How to adapt and stay ahead in the post-pandemic mortgage market – Merrett

How to adapt and stay ahead in the post-pandemic mortgage market – Merrett

In mortgages, we have seen huge criteria changes and a rush on intermediary services to support record purchase transaction demand, and now secure rates on remortgages amidst ever-escalating cost.

But from a consumer perspective, it feels like the pandemic was the catalyst for ongoing change in the way we think about what we want from our homes and our lifestyles, and the way in which property can support those goals.

Having open conversations with your clients as well as keeping an eye on trends and research can ensure that you keep one step ahead of the changing market.

With that approach in mind, I thought I’d explore the impacts of the pandemic yet to come, and ways to support discussions with some of the following types of clients:

 

First-time buyers

With deposit and affordability challenges rife in the marketplace, and the approaching end of Help to Buy, the profile of joint borrower, sole proprietor mortgages seems to be growing.

For me, the most interesting of a new breed of options is with Generation Home. The proposition is innovative, and its modern marketing approach and intelligent use of language potentially gives us new opportunities to talk to a different breed of customer who may otherwise either not be engaged with buying or home, or simply think it’s impossible.

 

Buy-to-let borrowers

You may have seen some information about green mortgages recently. They seem quite vogue, right?

Clearly saving the planet is hugely important, but how can these be used to help your advice process and client engagement? The key is to understand the upcoming energy performance certificate (EPC) requirements on property that start with landlords. Given the requirements, we are already hearing reports of buy-to-let investors increasingly looking at new-build properties not affected by this regulation, thus potentially saving a great deal of hassle and investment in the longer term.

 

Holiday let

The rise of holiday let and second home purchases is not exactly a new headline, and I am sure you have all experienced a surge in enquiries on this basis. We like to flex our advice muscles when having client conversations, so why not go a step further and get some excellent know-how in your back pocket?

The Sykes Staycation index is one such resource. Who knew a hot tub could make your client’s holiday cottage potentially 54 per cent more profitable?

 

Older borrowers

The ‘Thursday Murder Club’ effect?

Bear with me on this one – many older customers will have experienced long periods of isolation and anecdotal feedback has reported a surge in interest in the luxury concierge-style retirement villages. You know the ones, advertised in the Sunday papers’ property pages with swimming pools, gym, and a desirable community vibe.

Given such a location was the setting for Richard Osman’s best-selling novel, which is about to be turned into a film, will some of your older customers read about such a community and think to themselves, ‘I want a piece of that’?

If you engage with equity release and downsizing options, you could be the gateway to helping them achieve this dream and your business could be the beneficiary of a ‘Thursday Murder Club’ effect.

The lowdown on alternative home ownership options – an explainer

The lowdown on alternative home ownership options – an explainer

 

Mortgage Solutions has spoken to providers who are working or planning to work with mortgage advisers to help them place clients struggling to buy a home through the mainstream routes.

 

Generation Home

Generation Home is a mortgage lender which was launched by husband and wife Will Rice and Sophia Guy-White last year through Legal and General Mortgage Club. It expects to be available to all brokers this year. 

It offers a product like the joint borrower, sole proprietor (JBSP) mortgage which allows family and friends of a homeowner to act as a guarantor and make optional payments towards a mortgage.  

People who join the mortgage can choose to stop making payments at any time and can take themselves off before the term ends. 

It also offers a ‘DIY Help to Buy’ which allows people to contribute to a borrower’s deposit in return for equity. 

When the property is resold, Generation Home acts as an agent to give everyone their share. 

The firm is backed by institutional funding, including Natwest. 

It recently launched 95 per cent loan to value (LTV) products with rates beginning from 3.78 per cent for a two-year fix with a £999 fee. 

It will accept employed and self-employed borrowers, those receiving pension, rental and investment income as well as commission or overtime. 

 

Ahauz

Adam Ginty, head of marketing, described Ahauz’s product as a “private version of Help to Buy”. 

Launched in September 2021, Ahauz will lend against existing and new-build properties in England and Wales. Ginty said there was a growing number of lenders accepting the Ahauz loan as part of a borrower’s deposit. 

The loan has rates between 6.99 per cent up to 9.99 per cent depending on property value, and there are no early repayment charges (ERCs). Repayments are made on an interest-only basis, and borrowers must demonstrate how they will pay off the loan which matches the term of the mortgage. 

The initial rate is fixed for five years before it reverts to a standard variable rate. Borrowers are able to refix if they choose. 

Ahauz has worked closely with brokers to help shape its proposition and has partnered with some advisers since its launch. 

Borrowers must have a minimum income of £25,000 and Ahauz does not lend against buy-to-let, houses in multiple occupation (HMO) or semi-commercial properties. 

It will lend up to 25 per cent of a property’s value and borrowers must put in a minimum of five per cent. 

If the value of a property changes, the value of Ahauz’s share fluctuates to reflect this. 

 

Even

Even is a second charge lender which provides interest-free equity loans. It was launched by Matt Robinson and James Turford, co-founders of estate agency Nested last year. 

It describes its loan as similar to Help to Buy but is only available on pre-owned properties. Even can provide loans up to twice that of a buyer’s deposit up to a maximum of £100,000. 

Even does not charge interest because in return for the loan, it holds a stake in the property. The share changes along with the property’s value and is factored in once the loan is repaid. 

Even caps the profit made on its share by twice the amount of the original loan if this is repaid within 10 years. The limit rises to three times if the loan is paid back after 10 years. 

There are no early repayment charges. The owner also keeps any increase in value resulting from structural renovations.  

Even aims to serve first-time buyers who do not have family help and would prefer to buy a pre-owned home in England or Wales.   

It has a private financing facility to originate its loans. This is secured for the customer, so the loan is protected should anything happen to the firm.  

It is currently working with Kensington Mortgages as a first charge lender to deliver its loan and hopes to partner with more first charge lenders to broaden choice. 

The term of the loan fits with the first charge mortgage and each month, the customer pays off some of the capital loan amount..  

It does not accept people with adverse credit, individual voluntary agreements (IVAs) or county court judgments (CCJs). It requires borrowers to have at least a five per cent deposit and be in the market for a mortgage that is 4.5 times their income. The minimum income allowed is £20,000 and the first charge mortgage must be between 75 and 90 per cent LTV. 

Even’s contribution combined with the customer’s deposit cannot exceed more than 25 per cent of the property value. 

 

Proportunity 

Proportunity is an intermediary-only lender run by co-founders Vadim Toader and Stefan Boronea. 

It offers shared equity second charge mortgages aiming to boost borrower’s deposits up to 95 per cent LTV of a first charge mortgage when combined.  

It has a Proportunity Home Index (PHI) algorithm to help buyers to find properties which are “fair valued or undervalued”, and these are the homes it will lend against.  

It is designed to be similar to the government’s Help to Buy scheme but with fewer restrictions. Loans can be used on existing homes as well as new builds, and borrowers do not need to be first-timers. They will own 100 per cent of their home.  

The interest rate of the loan varies between 5.99 per cent and 8.49 per cent, depending on circumstances and property type. 

It said its rate was comparable to Help to Buy when factoring in the condition that the government scheme’s loan does not need to be repaid for the first five years.   

“Having said that, our cost needs to be compared with the premium that a customer is paying when buying a new build,” Toader said. 

Proportunity can provide a loan up to six times income with a five per cent deposit. 

It accepts those with good credit scores who are either employed, self-employed or key workers.  

It launched in 2018 and its debt fund includes a range of private and institutional investors. It recently expanded its funding facilities to be able to lend £100m by the end of 2023. 

The firm’s growth and salaries are funded through venture capital partners while debt funding lines are used exclusively for lending from institutional lenders such as asset managers and commercial banks. 

The loan term matches the term of the main mortgage and has a fixed rate for the first five years. Customers can refix after five years. 

Monthly payments are interest-only. If the property value increases or decreases, the buyer and Proportunity share the gain or loss. 

It cannot be used for buy-to-let or houses in multiple occupancy (HMO) purchases but it does permit lodgers and allow borrowers to have buy-to-let investments in the background.  

Proportunity accepts both old and new builds, flats and houses. It will run all properties through its proprietary technology to assess its ‘credit worthiness’. If it finds the property is significantly overpriced, it will not lend.   

It also does not lend on properties sold at auction, ‘cash buyers only’ homes, or shared ownership properties. 

 

Wayhome

Wayhome aims to cater to “reluctant renters” who can afford mortgage payments but are unable to raise a deposit. 

It is gradual homeownership proposition, similar to shared ownership, which allows customers to increase their equity in a property from as little as £50 at a time. 

Cal Graham, head of marketing, said: “Obviously, if you’re only going to buy £50 of your home, your rent is not going to come down very much. The idea is if you’ve got a bonus from work, and you have a couple of thousand pounds, you might put that into your home.” 

Wayhome acts as a cash buyer for a property then charges the customer market rent on the share it owns. Borrowers pay legal fees, stamp duty and surveyor fees relative to the share they own. 

Any additional shares purchased will be valued at the current price of the home and Wayhome does not charge fees to staircase. 

It also splits maintenance costs with the tenant depending on the share it owns, meaning for a home where Wayhome owns a 90 per cent stake, it pays for 90 per cent of repair costs. 

Borrowers with household incomes between £24,000 and £140,000 will be considered and it lends to those aged between 21 and 55. 

Deposits between five and 30 per cent are required at a minimum value of £7,500. 

It will lend on houses or flats, but not new builds, with values between £150,000 to £500,000. 

It does not accept borrowers with adverse credit, but it does consider those who are self-employed with one year of accounts. It is also Shariah-compliant. 

Wayhome will only purchase homes where it can make a four per cent yield on rent. It caps how much it allows homeowners to pay in rent to keep it affordable. 

It is preparing to build relationships with brokers to distribute its product and so far, has approached speciality advisers. Wayhome said it will offer “industry-standard” proc fees of 3.5 per cent. 

 

Tembo 

Tembo is a mortgage broker headed up by co-founder and owner Richard Dana. It acts as a marketplace for family boost mortgages, equity loans and gradual ownership schemes. as well as traditional mortgages and protection. 

It will connect clients to alternate routes to home ownership including the aforementioned companies. 

Additionally, due to mortgage adviser interest, it recently launched a partnership platform with independent financial advisers (IFAs), brokers and equity release providers to place cases which have been denied due to affordability or deposit issues. 

Dana said: “Our partners prefer not to advise on these products given the time and complexity in arranging them. If they can arrange three standard mortgages in the same time it takes to co-ordinate one complex family mortgage or equity loan, for many mortgage advisers it simply makes more financial sense to refer to a specialist and share in the commission.” 

Tembo raised its initial investment from Founders Factory, a digital venture investor. It has since raised £2.5m investment directly from Aviva Group. 

 

Tembo brings out partnership platform and hires partnerships head

Tembo brings out partnership platform and hires partnerships head

 

The platform, which has been initially launched with independent financial advisers (IFAs), brokers and equity release providers, will permit brokers to aid customers who have been denied a mortgage due to affordability or deposit issues.

The Money Group is one of the first advisers to join the partnership platform. According to a spokesperson, it has 20 partnerships signed up currently and it is targeting 100 by the end of the year.

It will also allow brokers to give customers more advice on various borrowing options available, especially if they have financial support from family.

Tembo said that this platform would help mortgage clubs, IFAs and brokers help more complex clients, especially given the growing number of products with more complicated criteria and compliance.

The platform will also provide specialist mortgage advice, with Tembo’s mortgage brokers focusing on family mortgages, Help to Buy, shared ownership, private alternatives and first-time buyer mortgages.

Tembo has appointed Steve Nobes (pictured) as its head of partnerships to deliver the new model. In his role he will grow its business to business offering, launch referral schemes and white label partnerships with high street brands.

He was most recently at Iress, where he was key account manager for nearly four years. Prior to that he was a digital community manager at MortgageGym for nearly five years.

He has also held roles at TSB, Smartr365 and Lloyds Banking Group.

Richard Dana, chief executive and founder of Tembo, said: “Getting a foot on the property ladder has never been harder, but luckily there has been an influx of innovation in recent years. At Tembo, we are constantly looking to increase access to home ownership, and to encourage uptake of new products to market that can achieve this goal.

“Our new partnership platform will help to increase distribution of these often complex products, to further our goal to help more people onto the ladder faster and for less.”

Tembo is a mortgage broker and lender which launched in June last year. It initially offered a whole-of-market alternative to guarantor mortgages.

The firm raised £2.5m in a funding round in August, with investors including Aviva and Nationwide, which it said would build an online technology platform with an initial fact find that will input data on possible support from family and friends.

MBT upgrades platform with income calculations and JBSP products

MBT upgrades platform with income calculations and JBSP products

The additions mean the platform can now provide even more accurate calculations for those who earning income through these channels or those looking to borrow using JBSP products.

Tanya Toumadj (pictured), chief executive at MBT, said its close work with lenders to inform its proposition had showed an emerging theme with CIS, umbrella companies and JBSP products.

She explained: “More lenders are offering specialist solutions in these areas and they calculate affordability in different ways, which means a significant divergence in the loan amount that could be achieved by the borrower.

“For example, when it comes to contractors earning their income through the CIS, most lenders treat these applicants as normal sole traders and base their affordability calculation on the net profit figure from each year’s tax returns. However, there are now 10 of the top 43 lenders that will take the gross weekly wage as if the applicant was employed, rather than the net profit figures.”

Toumadj said this could lead to a “big difference” in loan amount, and added CIS was “becoming a more competitive part of the market”.

She added: “We’re seeing similar competition in the umbrella companies and JBSP space and so it was clear that it was a natural development for the MBT platform to deliver bespoke calculations in these three areas.

“Continual development and improvement is a core element of our business and we never rest on our laurels when it comes to connecting customers to the right mortgage lender through brokers, improving the process and experience for everyone through technology.”

Loughborough BS brings out high LTV JBSP product

Loughborough BS brings out high LTV JBSP product

 

It is a two-year discounted rate priced at 3.1 per cent and comes with a £499 arrangement fee, and it can be used on residential properties in England and Wales.

The range currently includes five basic JBSP products and further two which are Buy for University products.

Existing offerings include two variable rate products, such as a two-year discount deal at 90 per cent LTV priced at 2.75 per cent, and a two-year discount rate product at 100 per cent deposit guarantee priced at 3.25 per cent.

It also has a three-year fixed rate product at 100 per cent deposit guarantee priced at 3.15 per cent.

The range allows older family members to help younger relatives get on the property ladder and allows up to four people on the mortgage application to help a borrower secure a home.

Affordability is assessed on account income and commitments of all named parties, and terms of up to 40 years are available.

All parties are responsible for mortgage payments and there is no requirement for the proprietor to take on the mortgage alone until family members are ready and able to make the switch.

Ashley Pearson (pictured), national business development manager at the mutual, said it had launched an 85 per cent LTV option in November and had been pleased with the response.

He said: “Introducing a product up to 95 per cent LTV for standard JBSP means we’ll be able to help more people realise their home ownership ambitions. It also sits nicely alongside our 90 per cent JBSP and our 100 per cent deposit guarantee JBSP offerings.”

Brokers see spike in divorce-related enquiries

Brokers see spike in divorce-related enquiries

 

During the pandemic, brokers anecdotally reported an increase in divorce-related enquiries, especially after the first lockdown, as the pandemic meant couples were isolated together for long periods of time which placed pressure on relationships.

However, brokers have said that in the past few months divorce-related enquiries had also risen, whether that is to remortgage to buy out partners, mortgage to purchase another property, remortgage to cover case settlements, single parent mortgages or joint borrower sole proprietor (JBSP) mortgages where a family member supports someone who is getting divorced.

The most recent statistics from Family Court state that there were 26,301 divorce petitions made during April and June this year, up seven per cent from the same period last year. Around 30,645 decree absolutes granted in the same period an increase of 23 per cent compared to the same quarter in 2020.

Chris Sykes, associate director and mortgage consultant at Private Finance, said that in the past two months the firm had seen “huge increases” in such enquiries.

Sarah Tucker, managing director of The Mortgage Mum, added that since lockdown measures were lifted there had been a big rise in divorce-related mortgage enquiries, specifically single-parent mortgages. She noted that in August 80 per cent of its enquiries were around single-parent mortgages.

Jennie Delelis, mortgage and insurance adviser and financial planner at Evolution Financial Planning, also said she had seen an jump in such enquiries recently, pointing to pressure from the pandemic and financial pressure as possible catalysts.

 

Challenges around financial commitments

Sykes said the fact the transaction may be divorce-related would have much bearing on a lender’s decision making, but “all the factors need to fit”.

He explained: “If there are child or spousal maintenance agreements, or agreements to pay school fees then this all needs to be considered. If there is going to be a marital home in the background commitments like a mortgage around this property will need to be taken into account.”

He added that if the transaction was still affordable it would most likely be fine, but loan to value limits or lenders available on purchase may be impacted, especially if someone already has a property in the background that was the marital home.

David Hollingworth, associate director of communications for L&C Mortgages said the breakdown of a relationship would most likely have “financial implication for both parties”.

He said: “There can often be a desire to retain the family home so that upheaval for a family is reduced to a degree, but that may not always be possible. Buying out the other partner’s share can be difficult especially where the borrowing had been based on income that was unevenly distributed between the two.

“If the main earner is moving out, then to put the property into the remaining partner’s name would mean the mortgage lender will have to see enough income to continue to support and potentially increase the mortgage to enable the buyout.”

He added that maintenance payments would then be “critical for affordability purposes” and lenders had “varying approaches”.

Hollingworth also explained that previously, the only way for maintenance payments to be included into affordability was by court order, but said lenders now had a more “flexible approach” to evidence maintenance income.

This could be done via a solicitor’s letter or by showing a track record of payments. Typically three to six months’ track record may be required.

Hollingworth added that another “stumbling block” was the duration of maintenance payments.

He explained: “By their nature, they will be for the benefit of the children and if the maintenance payments will stop within a few years then a lender may struggle to factor those payments in as adequate support for affordability.

“There are also now more lenders that will accept 100 per cent of the maintenance income but some may still only accept a proportion, so that could affect lender choice too.”

Sykes added that Private Finance had previously suggested to clients that they can “bolster their affordability” and “add a lot of borrowing power” by opting for a lump sum for maintenance payments rather than monthly commitments.

 

Joint borrower sole proprietor popular for newly-divorced

Tucker said lenders were happy to support single parents and borrowers, but it all came down to affordability.

She explained that often clients relied on family members to support newly-divorced applications, and this could be done with a JBSP mortgage, which she said had become “hugely popular” in the last two years.

Tucker said: “It gives our clients the chance to start fresh and work towards borrowing on their own in the future. It becomes hugely important to newly divorced clients to break away financially from their ex-partner, and I get that.

“Our job is to make sure they do this when the time is right and knowing they can afford it. JBSP allows us to give more people this option and freedom.”

Broker and solicitor advice vital

Brokers agreed that it was important to seek advice from a solicitor and a broker early in the process who can help you navigate the process.

Sykes said: “Seek advice early on in the process is the ideal, we can make sure a client is fully informed of their options and it could affect the process of divorce itself.

This was echoed by Delelis who added that seeking the advice of a solicitor if mediation hasn’t worked would help settle on a plan agreeable to both parties regarding children and assets.

She said: “Unless, they have a clear idea of settlement and what that might look like after the divorce is final, it’s going to be difficult to plan. Lenders want facts, which are sometimes impossible to provide until we know what their financial circumstances will be like post-divorce, if not already financially independent. After that, normal affordability processes apply.”

Tucker added: “Our advice to those who are wondering what their options are after a breakup, is to speak to a broker you trust, someone you can speak openly with, and someone who is going to hold space for you to navigate this situation with empathy. Emotions are high, and you may not be thinking logically at first.”

‘We want whole of market broker coverage by next year’ – Generation Home

‘We want whole of market broker coverage by next year’ – Generation Home

 

The lender offers a product similar to a joint borrower, sole proprietor (JBSP) mortgage which allows family and friends of a homeowner to act as a guarantor and make optional monthly payments towards the mortgage. 

It also offers a ‘DIY Help to Buy’ which allows other parties to contribute to the deposit on a property in return for equity which increases or decreases in line with the value. 

Sold exclusively through adviser firms who are part of the Legal and General Mortgage Club, Generation Home recently joined the Twenty7Tec platform to widen its reach. 

The likes of Mortgage Advice Bureau, Stonebridge Mortgage Solutions, JLM, Alexander Hall and The Right Mortgage are now able to advise on its products. 

The lender hopes to widen the distribution of its range to the whole of the intermediary market by next year. 

Rice said: “We have just under 4,000 advisers on our panel and during the course of next year we plan to roll out to the whole of broker market. We want whole market coverage by the end of next year. The support we’ve had from brokers to date has encouraged us to do that.” 

Generation Home said its current business split was 60-40 with majority of products sold direct to customer, but hoped to raise its intermediary led business up to 80 per cent. 

 

Broker assistance 

Generation Home has worked closely with brokers during its inception and the subsequent distribution of its products through MAB with the help of Kevin Bray, intermediary mortgage manager and Michael Aldridge, vice president of sales and partnerships. Aldridge was former innovation director at London and Country.

It was following conversations with brokers that the lender decided to tweak its products as well as add remortgage and capital raising options. 

Rice said the broker feedback was integral to its business as the issue of lenders entering and leaving the market after “doing too much too soon” was raised repeatedly by intermediaries. 

Speaking at the Mortgage Solutions British Mortgage and Protection Senate in September, Greg Cunnington, director of lender relationships and new homes at Alexander Hall, lauded the Generation Home’s affordability structure and said mainstream lenders should consider following suit.

 

Replacing schemes 

Rice said Generation Home’s proposition could be deemed a replacement to existing schemes such as Help to Buy or shared ownership. 

“The product we provide gives a secure and efficient way for families to co-invest into a property with their loved ones. It offers an alternative where a customer might have previously used or relied on Help to Buy.” 

He said the option for those who contribute to the deposit to see their equity change depending on the property value was an added incentive “because the control remains in the hands of the customers.”  

Generation Home claims its rates and fees are competitive. In its brochure which has been distributed to brokers, a 90 per cent loan to value (LTV) product which is fixed for two years has a rate of 3.19 per cent. 

 

Future growth 

Generation Home has raised £30m in equity funding from investors so far including backing from Natwest, which is one of its funding partners. 

It also has a referral arrangement with Barratt Homes where potential customers are informed of Generation Home products when they enquire about purchasing a home. 

Rice said the lender was satisfied with the service it had been giving to brokers and clients as it put it in a position to “scale up aggressively”.

He added: “We want to become a top 20 lender in the UK by next year.” 

Generation Home added to Twenty7Tec platform

Generation Home added to Twenty7Tec platform

 

Generation Home was launched by husband and wife, Will Rice and Sophia Guy-White, in 2019 and was given regulatory approval to provide mortgages in September last year. 

The offering is similar to a joint borrower sole proprietor (JBSP) mortgage in that it allows multiple parties to be named on a mortgage.

Where it differs is each party can choose to make payments or stop making payments when they choose. People can also be removed from the mortgage before the end of the term. 

People on the mortgage can also earn equity in the property being lent on depending on any mortgage repayments they make. 

The lender launched exclusively to Legal and General Mortgage Club earlier this year. 

Rice said: “Independent advice is incredibly important to first-time buyers. As Generation Home takes its first steps towards opening up fully to intermediaries, working with Twenty7Tec will mean that more intermediaries can find, access and obtain a Generation Home mortgage for their customers.

“We know from working with intermediaries that Twenty7Tec is an invaluable tool for them to source products and therefore serve their customers better.”

Nathan Reilly, director of lender relationships at Twenty7Tec, added: “Based on data available through our Insight module, joint borrower sole proprietor was the most searched piece of criteria during September.  

“This clearly underlines the challenge affordability still presents for many first-time buyers and the market as a whole, so it’s encouraging to see Generation Home tackling this issue head on and working with intermediaries to help more customers take their first step onto the property ladder.”

Buckinghamshire BS cuts prime mortgage rates and ups JBSP limit

Buckinghamshire BS cuts prime mortgage rates and ups JBSP limit

 

Prime borrowers are subject to the mutual’s standard credit criteria which allows minimal credit issues, with none in the last year. 

Rate cuts have been made to the three-year discount product, which is 2.05 per cent lower than the mutual’s standard variable rate (SVR). This has been reduced from 3.29 per cent to 2.99 per cent. 

The three-year fixed product has also been cut from 3.29 per cent to 2.99 per cent. 

 

JSBP mortgages 

Its JBSP range is now available up to 90 per cent LTV, previously 80 per cent LTV. The mutual said this was in response to feedback from both customers and brokers. 

Tim Vigeon (pictured), head of lending at Buckinghamshire Building Society, said: “We pride ourselves on supporting people to own a home of their own and we are determined to do whatever we can to help first-time buyers join the property ladder. These significant changes to our product offering provides people with better value and more flexibility.  

“This, coupled with our human approach to underwriting, will ensure we are able to consider applications on a case by case basis, with the aim of a positive outcome. We work closely with our broker network and feedback has allowed us to evaluate and continuously improve the products we offer.”