First phase of launch begins today with new full interest-only product
Fintech mortgage lender Gen H has introduced a phased interest-only mortgage offering, designed to support home movers, remortgagers, and particularly first-time buyers facing affordability pressures.
The lender says the product is aimed at increasing homeownership options by enhancing affordability. Based on Gen H’s modelling, an interest-only structure could improve borrowing capacity by 10 to 15% over a 30-year term for borrowers with a viable repayment plan.
The first stage of the rollout, a full interest-only product, becomes available to brokers on the Gen H panel from today, June 23.
Phase one targets financially-savvy home movers and first-time buyers, including young professionals and self-employed individuals. It allows them to focus on homeownership while still meeting savings or investment goals.
Phase two, expected later in summer 2025, introduces the use of income boosters — such as family members — who can contribute to the repayment plan without needing to draw down existing investments like pensions or buy-to-let assets.
Phase three, due to launch in autumn 2025, offers a part-and-part option that combines interest-only with capital repayment. This is intended to improve affordability even for borrowers with small deposits or limited repayment strategies.
The new range includes a dedicated product set, starting with a rate of 5.09% at 60% loan-to-value. The maximum LTV is 80%, and applicants must have a household income of at least £50,000. Terms are capped at the earlier of the eldest borrower’s 75th birthday or their retirement.
Acceptable repayment vehicles include the sale of the mortgaged property (up to 60% LTV with a minimum £200,000 in equity), the sale of another property, investments, and pensions. Gen H said it plans to expand this to include savings and bonus income in the future.
Brokers can access full lending criteria through the lender’s online criteria and packaging centre.
“Housing affordability challenges are here to stay, and helping everyone access homeownership and build long term wealth requires us to consider how familiar tools can be used in new ways,” said Pete Dockar (pictured), chief commercial officer at Gen H. “Interest only is a perfect example – it has long been considered a tool for the rich, but as one of the UK’s only lenders creating truly incremental homeowners, we believe it can support first-time buyers as well.”
Nicholas Mendes, head of marketing at broker firm John Charcol, welcomed the product rollout, calling it a “thoughtfully designed solution” for buyers facing affordability hurdles.
“This launch recognises that, for some buyers, traditional routes to homeownership are increasingly out of reach,” Mendes said. “A well-structured interest-only product has the potential to increase borrowing power in the right circumstances and create options where few previously existed.”
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