Generation Home Mortgage

[Neenan]

www.generationhome.com

Anyone investigated or taken up a mortgage from these people? Any pitfalls, hidden flaws etc?

On paper it seems perfect for our situation. Which is to help DD get on the property ladder, so would be lending her a third of the cost of a house purchase for a period of up to ten years when she could then hopefully take over the full mortgage herself.

Do you happen to know what interest rate they are charging? How much are the arrangement fees? Sounds interesting...

The interest rates vary depending upon the deposit, and yes they are higher than the high street presumably because of the risk they take but we were looking at putting a LTV of 60% so the rates were:

Initial rate

2 year Fixed Rate for the first 2 years 2.29 then 4.18% and

5 year Fixed Rate 2.39 and 3.72% respectively.

No fees.

Obviously the smaller the deposit the higher the rate, and the size of the income and deposit boosters will make all the difference.

Initial rate

Rate for the first 2 years

1.99

%

APRC

Total cost over the mortgage term

4.17

%

5

year fixed

£

fee

Initial rate

Rate for the first 5 years

2.39

%

APRC

Total cost over the mortgage term

3.72

%

Sorry for the messy post, I copied and pasted and didn't delete

@ QuoteNeenan
Thank you.

Just found an article about it. I'm going to tell my teacher friend. It could be the best way she can afford to buy a home.

www.thisismoney.co.uk/money/mortgageshome/article-8885765/Insta-mortgages-instant-hit-new-lender-Generation-Home.html

That’s where I heard about them originally, I’m just nervous that no one seems to be aware of them. Or maybe not that many people are fortunate enough to have helpers, I’m not sure.

A little more info...
forums.moneysavingexpert.com/discussion/6203990/generation-home