"We are delighted to bring this to market and look forward to launching phases 2 and 3 to support even more people in the coming weeks and months"
- Pete Dockar - Gen H
Gen H has confirmed the first phase of its new interest-only mortgage proposition will go live today (23 June 2025), marking the beginning of a three-part rollout aimed at improving affordability for a wide range of borrowers, including first-time buyers.
The lender described the phased proposition as a targeted tool designed to address affordability challenges in a changing housing landscape. According to internal modelling, Gen H estimates that, with a viable repayment strategy in place, an interest-only mortgage could enhance affordability by approximately 10–15% over a 30-year term. This, the lender believes, could make a significant difference for renters seeking to transition into homeownership.
Phase one of the offer will be available to brokers on Gen H’s panel starting 23 June. It comprises a full interest-only product targeted at financially literate first-time buyers and home movers, particularly young professionals and self-employed individuals. The product is intended to allow borrowers to balance homeownership with longer-term saving and investment goals.
The three phases of the proposition are structured as follows:
Phase 1: Full interest only for first-time buyers and home movers who meet the lender's financial criteria.
Phase 2: Interest only with income boosters, allowing supporters to help with repayment strategies while maintaining their own investments.
Phase 3: A part-and-part structure combining interest only and capital repayment to suit a wider range of affordability profiles and deposit sizes.
Phase two is expected to go live in summer 2025, with phase three scheduled for an autumn release.
At launch, the product will include a distinct product range, a rate of 5.09% at 60% loan-to-value (LTV), and a maximum LTV of 80%. The minimum household income required is £50,000. The term of the loan can run until the oldest borrower reaches the age of 75 or retires, whichever comes first.
Acceptable repayment strategies for the interest-only portion include the sale of the mortgaged property, subject to a maximum 60% LTV and at least £200,000 in equity, the sale of an alternative property, investment portfolios, and pensions. Regular savings, cash reserves and bonus income are expected to be added to the list of acceptable vehicles in the near future.
Brokers will be able to review the full eligibility and packaging requirements via Gen H’s searchable and alphabetised criteria hub.
“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, 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. An interest-only mortgage can spell the difference between staying locked in the rental cycle or accessing homeownership and building meaningful wealth over time.”
He continued, “What’s more, too often we expect aspiring buyers to either save or own, but for some, interest only can be the tool that lets them do both, while boosting affordability at the same time. I am confident that our panel of intermediaries will wield this new product with precision – interest only can be a game changer for the right financially-savvy clients. We are delighted to bring this to market and look forward to launching phases 2 and 3 to support even more people in the coming weeks and months.”
