The injection of funds would allow the lender to widen its mortgage offerings to more than 4,000 first-time buyers, Generation Home said, including the expansion of its 95 per cent loan to value (LTV) mortgages for NHS workers.
Waterfall’s investment will be partially financed by a senior warehouse facility from Barclays Bank, Generation Home said.
Added to the £300m raised in April, the company said, this fresh round of funding would open a path to home ownership for thousands of families stymied by what it called more traditional lending requirements.
Generation Home opened its doors in October 2020 with a goal to disrupt the traditional UK mortgage market by focusing on first-time buyers facing affordability and deposit challenges.
Will Rice, co-founder and chief executive of Generation Home, said: “Capital accumulation is the greatest challenge faced by young people, who struggle to get onto the property ladder while saving for their own retirement. Our innovative products provide better ways for families to lend a hand and make it possible for millions to do this where they couldn’t before.”
The injection by Waterfall, he said, was “a vote of confidence in an industry starved of innovation and will directly help thousands more aspiring homeowners realise their dream of home ownership.”
James Cuby, managing director at Waterfall, added: “We are pleased that our partnership with Generation Home will enable us to provide financing for residential mortgages in the UK and, particularly, first-time buyers.”