Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Gen H chief executive Graham McClelland says the lender has demonstrated it is possible to grow from scratch, become sizeable and have an influence in the UK mortgage market. Six years after launching as a lender focused on getting more people into homeownership, first-time buyers now account for 60% of its lending activity.
Speaking to Mortgage Solutions, McClelland said Gen H has no ambition to compete with the big six lenders, which he said already hold their places in the market "reasonably well". Instead, the lender focuses on incremental change, starting with first-time buyers because "you can create a homeowner where there wasn't one".
Product range and future plans
Gen H launched with a joint borrower sole proprietor (JBSP)-style mortgage for first-time buyers and has since added a New Build Boost, modelled on the Help to Buy equity loan, and interest-only mortgages. Around a fifth of its business is now remortgage.
McClelland said Gen H wants to concentrate on segments few or no other lenders operate in, considering borrowers with less-than-perfect credit and potentially second charge lending. He said he is confident in the lender's underwriting and systems, and wants to change how it lends to give more people the opportunity to get a Gen H mortgage.
The lender will also draw on relationships with other firms to support its balance sheet, replicating the four existing funding arrangements it holds with building societies such as Furness and Nottingham. McClelland would like to secure at least eight such arrangements in total.
Market conditions and criteria
McClelland observed that lenders are attempting to counter the slower market with more criteria changes, saying Gen H must keep itself "on its toes" on policy and criteria to solidify its place in the market. The lender will focus on "evolution rather than revolution", shaped by maintaining service levels and the risk appetite of its funders.
He described 2026 as "volatile" but said he is happy with how the year has played out, backed by high-quality lending and customer satisfaction. However, he does not expect volatility in pricing and rates to stop soon, describing the market as "bifurcated", with pockets where things are down and pockets where they continue to rise, though most of the country appears quite flat.
Making a mark
McClelland welcomed more innovation and more participants in the market, saying it creates noise and visibility. Gen H distinguished itself with its interest-only product for first-time buyers last year, and despite initial scepticism, other lenders now offer similar products. He said that when a lender's only lever is price, it will lose against big lenders, but Gen H has shown it is possible to grow from scratch and have an influence.
Source: Mortgage Solutions