Guarantor
Co-buy with family with a Dynamic Income Boost
Add some or all of a family member’s earnings to your household income to increase your budget. They can choose to build up an equity stake by contributing to the repayments, but won’t own your home.
Suitable for buyers & movers
Buy with up to 5 other applicants
Requires the support of a close relative
How does it work?
A Dynamic Income Boost is a joint borrower sole proprietor mortgage, where a guarantor’s eligible earnings are added to your household income. But unlike our standard Income Boost, they can also contribute to your monthly payments in return for equity in your home.
Each owner’s share is individual and will reflect how much they contribute to the repayments over time, as well as any change in the property’s value.
This can be suitable if you have family who want to help and are looking for a family group mortgage option, but you (or they) want a potential upside from their support.
Why Tembo?
We help buyers, movers and homeowners discover how they could boost their affordability in 3 simple steps. It’s why we’re the UK’s Best Mortgage Broker.
Things to consider
All mortgages have risks and benefits. Here are some key things you should know before applying for a Dynamic Income Boost
What are the benefits?
Increase your borrowing power
With up to 6 people on the mortgage application, you’ll have a larger total income which significantly increases the amount a lender is willing to let you borrow.
A stepping stone to independence
If you can afford the mortgage by yourself in the future and can buy your loved one’s share, you can remove them from the mortgage using a transfer of equity.
First-time buyer stamp duty relief is not affected
As your Booster isn’t on the deeds of the property, having a family member on your mortgage doesn’t impact any first- time buyer stamp duty you might be eligible for, and your Booster’s tax position won’t be affected either.
Your Booster could benefit financially
Some buyers find it uncomfortable to receive support from a guarantor while offering nothing in return. A Dynamic Income Boost is a way for your loved ones to help you buy, while also benefitting from any property price gains if they contribute to monthly repayments.
Risks and considerations
Everyone on the mortgage is liable for the debt
Your Booster doesn’t have to contribute to monthly repayments, but if you fail to pay, they will be required to step in. If no one makes the payments, this will impact the credit history of each applicant and could result in your home being repossessed.
Your Booster’s age could impact your repayments
Most lenders cap the mortgage term based on the age of the oldest applicant. If your Booster is over the age of 60, this means your mortgage term could be shorter than is usual, and therefore the monthly repayments would be higher.
All applicants will go through affordability checks
We need to ensure the mortgage is affordable for all applicants. Our assessment includes providing proof of income, outgoings, identification and a credit check.
Your Booster can’t live in the property with you
Any applicant who is going to live in the home will need to go on the mortgage as an owner (rather than a Booster).
Only close relatives are eligible
That includes parents, grandparents, siblings, aunts or uncles.
Got questions? We've got answers
See all FAQsFrequently asked questions
The application process
Get into your very own home in 4 simple steps
Make a Tembo plan
In under 10-minutes we’ll check your eligibility for a Dynamic Income Boost as well as other family group mortgages & buying schemes. Plus you’ll get a personalised mortgage recommendation including interest rates and repayments.
Talk to an expert
Book a call with our mortgage experts to complete the qualification process. We’ll cover any questions you might have about Dynamic Income Boost and any other family group mortgages or buying schemes.
Apply for a mortgage
Your dedicated advisor will undertake full affordability with you & your Booster, and prepare an application with your chosen lender. As part of the application process, we’ll help to arrange for your Booster to get Independent Legal Advice.
Make home happen
During the conveyancing process, we’ll liaise with the seller and your solicitors to ensure a smooth purchase. We’ll also provide a free protection review. Your case manager will be on hand all the way through to move in day!
Other schemes you might like
Explore other buying schemes to see alternative ways to buy
On your own
Deposit Unlock
Purchase a new build home from a participating home builder with just a 5% deposit.
See detailsWith a guarantor
Deposit Loan
Boost your deposit with help from family or friends in return for a share of your home
See detailsPart buy part rent
Private Shared Ownership
Buy a share of a home, and pay rent on the rest. Over time, you can staircase to full ownership.
See details
Other mortgage schemes
You can be snug in your very own home in 4 simple steps
Increase your affordability
Without a guarantor