Residential mortgage lender Gen H has announced rate reductions across its two, three and five-year fixed mortgage ranges, offering borrowers a first glimmer of relief after weeks of relentless increases.
The cuts follow a fall in swap rates – the rates that banks charge each other for borrowing, which have a major effect on fixed-rate mortgages – with the largest reductions applied at 95% loan-to-value (LTV). The new rates are already available to brokers on Gen H’s panel.
Rate changes across fixed products
Two-year fee-free products are down 14–30 basis points (bps) at most LTVs from 60% to 95%, including 30 bps at 95% LTV. Three-year fee-free products are down 10–22 bps at most LTVs from 60% to 95%, while five-year fee-free products are down 7–12 bps at 90–95% LTV. Products with fees are down by up to 21 bps. Targeted increases of up to 13 bps apply across 85% LTV products and up to 16 bps across parts of the retention range.
At 60% LTV, the fee-free two-year fixed is down 29 bps to 6.09% (6.8% APRC, £0 fee).
Lowest rates for new customers
Gen H’s lowest rates for new customers include a 5.79% two-year fixed at 60% LTV (6.8% APRC, £1,499 fee) or 6.09% fee-free (6.8% APRC, £0 fee). At 70–80% LTV, rates are 5.94% for a two-year fixed (6.9% APRC, £1,499 fee) or 6.14% fee-free (6.8% APRC, £0 fee).
At 85% LTV, the five-year fixed is 6.59% (7.0% APRC, £1,499 fee) or 6.69% fee-free (6.9% APRC, £0 fee). At 90% LTV, rates are 6.59% for a five-year fixed (7.0% APRC, £1,499 fee) or 6.69% fee-free (6.9% APRC, £0 fee). At 95% LTV, the five-year fixed is 6.69% (7.0% APRC, £1,499 fee) or 6.79% fee-free (7.0% APRC, £0 fee).
Support for excluded borrowers
Sara Palmer, chief distribution officer at Gen H, said: “Swap rates have come down ever so slightly and we're passing that on, with our biggest reductions for buyers with the smallest deposits. Many of our borrowers need the flexibility that our criteria and income booster give them, and these cuts make that borrowing more affordable.”
Gen H’s criteria aim to help borrowers who can be excluded from standard high street borrowing, including first-time buyers, home movers and remortgagers constrained by affordability, as well as the self-employed, foreign nationals, Construction Industry Scheme (CIS) workers, zero-hours workers, contractors, borrowers with complex income, and those who need a higher maximum age. Its income booster allows additional people's income to count towards affordability, so buyers can borrow more than they could on their own income.
