Gen H is set to launch an interest-only proposition aimed at home movers, remortgagers, and first-time buyers.

The proposition, which will be launched in three phases, has criteria to support a wide group of buyers.

The maximum LTV is 80%, and the minimum household income is £50,000. The proposition will have its own product range and will launch with a rate of 5.09% at 60% LTV.

The term can go to the eldest borrower’s 75th birthday or retirement, whichever is earlier. And acceptable repayment vehicles include sale of the mortgaged property (max 60% LTV + min £200k equity), sale of another property, investments, and pension, with regular savings, cash and bonus income coming soon.

The first phase of the launch, a full interest only product, will be available to brokers on the lender’s panel from 23 June. It is ideal for young professionals and self-employed first-time buyers, allowing them to prioritise both homeownership and saving or investment goals.

The second phase is interest only with a boost and is set to be live in summer this year. The income boosters can contribute to the repayment strategies, so borrowers can leave investments, such as a buy-to-let or pension pot to grow.

The final phase, launching in autumn this year, is part and part to maximise affordability, as well as those with small deposits.

This phase will top up a capital repayment mortgage with an interest only portion to boost affordability, or top up an interest only mortgage with a capital repayment portion if the repayment strategy isn’t quite there.

Gen H chief commercial officer Pete Dockar says: “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.”

Last week, Gen H cut its new build boost rate to 5.95%.