Breaking barriers: How brokers can turn innovation into access

"Where aren't there barriers?" said Graham McClelland, chief executive officer at digital mortgage lender Gen H. "You've got the cost of living, sticky wages, the price of homes, and how deposits are funded. The whole system seems misaligned."  

For many first-time buyers, the problem isn't just house prices or high rents. It's a mortgage system that favours predictability over flexibility, and affordability checks that often ignore real-world spending. But a wave of new product structures, led by fintech lenders, is trying to change that - with brokers positioned as the key to unlocking their potential.  

Affordability checks and broken assumptions  

At the heart of the problem is a disjointed affordability system. While many renters pay more in monthly rent than they would on a mortgage, they often can't qualify for one. "It's just silly," McClelland said. "The person paying that rent is already covering someone else's mortgage."  

He believes the current system, shaped by post-financial crisis regulation, has swung too far toward eliminating risk. "We’ve built a system that produces almost no arrears and almost no repossessions. That’s great on an individual level. But on a societal level, it shuts out a lot of people who could afford to own."  

A role for brokers in breaking the mould  

While traditional PAYE borrowers still dominate the mortgage market, growing numbers of clients fall outside that profile. "We’re encouraging entrepreneurship, but then penalizing anyone who doesn't fit the standard income mold," McClelland said.  

Gen H and other specialist lenders are developing propositions to serve this underserved segment. From part-and-part loans to income booster structures, their aim is to accommodate complexity – and that’s where brokers come in.  

"You don't want just anyone selling these products," McClelland said. " You want brokers who understand how these products differ and where they might suit specific client needs. Education is the biggest hurdle."  

Advisers who stay close to these innovations can unlock faster paths to homeownership for clients priced out of the high street. But it means going beyond the default two-year fix. "We need brokers thinking about who the client is, what their income looks like today and tomorrow, and what structure actually fits their life."  

Platforms support proposition, not the other way around  

McClelland said innovation isn’t about speed for speed’s sake. "The tech is there to support complexity, not just to offer an instant mortgage. That’s not what most buyers are asking for."  

Instead, platforms should enable propositions that other lenders can’t easily deliver. Innovations like New Build Boost and income boosters, used by lenders like Gen H, are helping clients get on the ladder earlier by structuring support from family or increasing affordability.  

"These aren’t entirely new concepts, but what matters is how quickly we can launch them, and how reliably we can deliver them."  

Other lenders are also contributing. McClelland points to April and Skipton for their work on high LTI and 100% LTV lending, and smaller building societies like Market Harborough for their responsiveness.  

"But if brokers aren’t aware or confident using these tools, they can’t help clients. Distribution is the last mile problem, and we all need to invest in fixing it."  

Systemic change still needed  

McClelland also sees a role for regulatory and policy change. Capital rules and the ring-fencing regime, he said, favour the biggest banks and discourage risk-taking by smaller lenders. That hurts innovation.  

"The people designing policy invite the same big institutions to the table. They should bring in the lenders actually trying to reach underserved buyers. We won’t move the market alone, but for the people we help, it matters."  

For UK brokers, staying informed on new lending propositions isn’t just a business advantage, it’s a way to open homeownership to clients being left behind by traditional rules. Innovation is real, but its impact depends on smart, trusted advice.