Fintech lender Gen H lays out plans to support FTBs

Gen H, the fintech lender which aims to support those struggling with affordability, has outlined further plans to support first-time buyers, as brokers praise the firm for its innovation.

A core tenant of Gen H’s offering is to “play in places the banks don’t” in the home buying process.

A core tenant of Gen H’s offering, formerly known as Generation Home, is to “play in places the banks don’t” in the home buying process.

The basis for this is the plan to generate additional income in those parts of the market and give it back to the customer.

Speaking to FTAdviser, Gen H CEO Will Rice described it as “a bit of a Robin Hood strategy”.

The fact that they have this cheap money means they can be rubbish in every other way – Will Rice, Gen H

This involves “taking revenue that either real estate agents, mortgage brokers or lenders make money on – capturing it and giving it back to the consumer”, he explained.

Rice outlined how the lender plans to launch its own in-house not-for-profit brokerage service in the coming months, which will see borrowers benefit from a lower interest rate as the lender “reinvests” its profits.

“On a two-year fixed-rate loan, we’re going to roll out a range that will be 30 basis points cheaper when you appoint Gen H Legal as your conveyancing attorney, and that reflects that we’re giving you full value back,” Rice explained.

“What it will present to the customer is a premium quality of service, it will be unique in terms of the benefits that come from the integration between our lending and brokerage businesses – but we will also provide it to the customer essentially for free,” Rice said.

In Rice’s view, this innovation speaks to the overall philosophy of the firm.

“The big big challenge with housing and mortgages is the cost of capital,” he said. “The financing costs of large banks and construction companies represent a phenomenally high barrier to entry.

“They have cheap money, you don’t have cheap money. And the fact that they have this cheap money means that they can be rubbish in every other way.

“And so our challenge in trying to transform the market is how do we deliver really competitive prices to our customers while being able to innovate and deliver great deals and services and change the way the home buying system works,” Rice said.

Launched in 2020, Gen H provides first-time buyers with “deposit and income boosters”. It has proven to be a success with first-time buyers and brokers alike.