Generation Home

PhilHindle

Has anyone dealt with the mortgage lender 'Generation Home'?

Brief update, looking to buy a house on my own, which is difficult from the get go with regards to how much you can borrow (only 1 salary to go off)
Generation Home seem to offer way more in terms of borrowing than anyone else.

For example:
£20k salary with a £20k deposit gets you to borrow around £90k from normal lenders
Generation home will lend you £140k with the same salary and deposit...

They call it the home booster where you can put a friend of family members salary down to be on standby if you struggle with payments.
Has anyone any experience with this/recommendations or highly un-recommendations?
Thanks!

Getting_greyer

Just had a quick search so no recommendations.  Though seems bit dodge to me but I'm very cynical.  But it could be right for your circumstances maybe.  I would offer a couple of observations.
The booster means the family/friend builds up a stake in the equity.

I also note the interest rate on the products looks to be comparatively high. 

md258

So the friend or family member is a guarantor and is therefore liable for the mortgage if you don't pay it?

If they also build up a stake of the equity, does that mean they count as owning another property for stamp duty (+3%)?

princeofpounds

The underlying company is called Imagine Mortgages. They are FCA regulated, although it looks like they have only been in operation for about a month.

https://register.fca.org.uk/s/firm?id=0014G00002TpyzNQAR

The product seems very similar to a guarantor, although the legal structure is different. I suppose one advantage is that if the 'guarantor' makes payments towards the mortgage, they are apparently attributed the equity that builds up as a result of their payments, rather than it being a straightforward subsidy of a defaulting borrower. The downside is that the 'guarantor' is a full party on the credit agreement. Interestingly, the 'guarantor' supposedly does not go on the title deeds despite being on the mortgage, which never normally happens.

I'm not sure it's ever a good idea to subsidise people who couldn't afford a property on their own, almost by definition. But perhaps it's a product with some use for some people. 

Wonder if the OP is commercial spam or not... If so, at least they aren't actively promoting it.