Generation mortgage a new mortgage scheme for first time buyers
DID YOU KNOW IN 2000 THE AVERAGE MORTGAGE WAS UNDER 4 TIMES YOUR INCOME NOW IN 2023 IT IS OVER 7.5 TIMES.
The mortgage industry must adapt and change to allow home ownership to be more accessible to more people…We are beginning to see new roots which is tremendously exciting, however these schemes maybe exciting and new, but the industry needs to wake up as well. By industry I mean brokers, networks and lenders.
Its all to easy to retrench into the norms of safety, use words like risk appetite etc, outside affordability or recite main lender criteria they have a place but not all the time. As a service industry we should be obliged to forever change and not become stale.
If as an industry, we do not find new ways to create ownership then we haveFAILED. If we destroy communities by people being forced to move away, we create a void, so a very different type of risk is created.
At the turn off the century house prices as an average were a little under 4 x income, now they are at 7.5 x income. This means buying on your own forces people to either move out of the community or buy with an individual or partner. Most mortgage Lenders see it fine to use two people’s income to buy a property no matter how stable the friendship or relationship is, so why is the family not
considered, yes we have the family mortgage and other schemes but we need fresh roots.
One such example of new roots is the fantastic scheme operated by Generation H, a lender with insight. They have looked at the problem in their own way and seen that family matters and families work together, so not only do they help affordability but they also create a community and a strong family bond.
This offering is both fresh and innovate, they look at the family make up and allow other relatives to help towards the mortgage. Unlike a guarantor or the joint liability scheme they don’t have to be blood relative and up to 5 people can be used.