An income booster is a close family member, who is added to the mortgage to help you borrow more. They are not an owner, nor can they live in the property. They are responsible for the mortgage in the same way as the owners.
They can choose whether they wish to contribute monthly, or simply remain on standby. If they do choose to contribute, they can build up an ownership stake in the property. However, they can choose to gift this equity back to the owners.
A deposit booster can also choose to gift their contribution and equity at any time.
How is this different to a transfer of equity?
A transfer of equity takes place when an owner is added or removed from the property deeds and equity is transferred between parties. Due to this changing the legal ownership of the property, your mortgage lender would need to provide consent and a conveyancer would be needed to action the transfer of equity.
Depending on whether the equity is gifted or purchased, Stamp Duty Land Tax may be payable.
If you are wanting to complete a transfer of equity, please contact us at [email protected].