Gen H has launched a new mortgage product designed to help first-time buyers and those with small deposits access homeownership sooner.
The lender’s new part and part mortgage allows borrowers with as little as a 5% deposit to combine part capital repayment with part interest-only borrowing, offering flexibility in affordability while still owning 100% of their property from the outset.
Under the new structure, buyers can take up to 80% of their mortgage on an interest-only basis and the remainder on capital repayment.
They can also make overpayments as normal to reduce their capital balance. To qualify, households must earn at least £50,000 a year.
Gen H said the product is particularly aimed at renters with modest deposits who might otherwise struggle to afford a standard capital repayment mortgage.
Previously, many of these buyers would have had limited options, such as continuing to rent, relying on family support, or turning to shared ownership schemes.
Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, said: “Buying a home is one of the most significant ways to build wealth.
“In fact, our research shows that by continuing to rent, aspiring homeowners could be missing out on up to £340,000 in potential wealth acquisition over 30 years. However, many renters believe that owning a home is completely out of the question.
“The good news is that homeownership is often more accessible than people think. It’s our job as brokers to shine a light on the many low-deposit solutions available, instilling more buyers with the confidence to buy sooner.
“We’re delighted to be working with Gen H on the launch of their new part and part mortgage, which will be a game-changer in helping even more reluctant renters become homeowners.”
Pete Dockar, chief commercial officer at Gen H, added: “For most people, the path to homeownership isn’t straightforward. In a country where the average house price is 8 times the average salary – to say nothing of places like London – the best mortgage products are those that can be carefully tailored to suit the needs of individual buyers.
“Part and part mortgages do exactly that. No more renting. No need for family help. And unlike shared ownership, there’s no staircasing, no frustrating administration, and no rent to be paid; just 100% homeownership from day one.
“We are thrilled to make this product available to our broker panel and to the growing number of clients they may now be able to support.”
