Which are the most innovative lenders for FTBs?

Generation Home have a fantastic proposition and are changing the way people can buy a property. It is designed at getting more people to own their own home, therefore helping first-time buyers. They have two innovative approaches: deposit booster and income booster, whereby friends or family can help with extra money for a deposit but retain an equity stake in the property or by way of additional income to increase borrowing, but again building up a share of equity in the property if they want to. Their customer service is outstanding and they have a sensible approach to underwriting.

There are so many examples of innovation for first-time buyers. The equity loan providers like Ahauz and Even, the 'rent-to-buy' style companies like Keyzy, Wayhome (and Strideup in a similar sense). Even 'normal' lenders like Nationwide offering their Helping Hand scheme (5.5 times income, though only 5.3 at the moment in practice). For us, though, Generation Home takes the crown, allowing up to six mortgage applicants to 'boost' income and borrowing, taking the term to 85 without having to use pension income for older applicants, unlike most lenders in the "joint borrower sole proprietor" space (subject to simple feasibility requirements). Combined with a flexible approach to 'boosted deposits' and their lending policy, which seems to borrow the 'best bits' from high street names, they are right out at the front for us at the moment.

Without a doubt, the most innovative lender for first-time buyers in the UK at the moment is Accord Mortgages, available via financial intermediaries only. Their implementation of new technology in 2022 has made them a gamechanger for speed of processing. This, paired with our own technology advances, means mortgage offers now spin off our combined servers in no time at all.

Generation Home have been outstanding. Great concept. Great Systems and a can-do approach.

With first-time buyers, we, the advisers, really have to show our worth. Regardless of what a lender offers, we need to make sure it's right before we recommend a product and ultimately no lender is 'best' for first-time buyers, as they nearly all service them. The question is would you prefer the borrower to pay more for a gimmick? They need sound advice, advice as good as you would give to someone who is an FCA compliance officer.

The Barclays Springboard mortgage is a great way to help a loved one get on the property ladder without a deposit. The Springboard mortgage is an innovative product that allows a helper to assist a loved one in purchasing their own property without the purchaser needing to provide any deposit. It has been around for many years, but its power is underestimated. The helper provides 10% of the purchase price, which is locked away for five years, and if mortgage payments are made during this period, the helper will receive their money back with interest. It's a fantastic alternative to gifting a deposit. Lending is subject to affordability and underwriting, of course, and helpers must seek independent legal advice.

For me, one lender that is breaking the mould in terms of its approach to FTB is Generation Home. Their 'Deposit Booster' and 'Income Booster' whilst not ground-breaking in terms of the concept, has some excellent quirks other lenders struggle with. The fact that a deposit can be loaned to the applicant by a friend, their relaxed approach to the term when a guarantor is in place, the opportunity for the person lending the deposit to have a stake in the home, payments from multiple accounts etc. All in all, it's a modern-day approach to lending and in recent weeks they've also had some excellent rates to go with it too. We need more of this for first-time buyers, especially with the lack of government schemes right now.