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Gen H cuts mortgage rates up to 30 bps across range – where will rates go as Iran war nears end?

ended 26. May 2026

Gen H has announced sweeping rate cuts across its entire mortgage range. The cuts went live at yesterday evening.

The cuts include:
● 2-year 60%–80% LTV rates dropping 30 bps
● 5-year 85%–90% LTV rates dropping 21 bps
● 2-year 80%–90% LTV rates dropping 11 bps
● New Build Boost rate dropping by 15 bps to 6.39% for an effective rate of 5.38%

These cuts target both home movers with larger deposits and first-time buyers with 5% and 10% deposits.

Sara Palmer, Sales and Distribution Director at Gen H, said: “What better way to kick off summer – or at least a heat wave – than with big rate reductions. It is a priority for our team to move as quickly as we can when swap rates fall so we’re able to support even more aspiring homeowners wherever possible. I hope these cuts mean a new round of happy buyers will have keys in hand before the summer is out.”

  • What is your reaction to the cuts?
  • Is this the direction of travel for mortgage rates as the Iran war appears to be nearing an end?
  • What other predictions do you have?

Responses asap.

2 responses from the Newspage community

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Editor
Nouran Moustafa
Practice Principal & IFA at Roxton Wealth
Gen H’s cuts are a welcome sign, especially for first-time buyers and movers who have been stuck on the edge of affordability, but I would not call this a guaranteed turning point yet. What we are seeing is lenders moving quickly when swap rates give them room, and that is encouraging, but mortgage pricing is still very sensitive.
If tensions in Iran are genuinely easing, that could help calm oil markets, inflation expectations and funding costs, which may support further lender competition. But borrowers should not assume geopolitics has suddenly stopped mattering. One headline can move sentiment quickly, and rates are still being shaped by inflation, gilt yields, swaps and expectations for the Bank of England.
My prediction is not a dramatic collapse in rates, but a gradual, patchy improvement. Stronger borrowers and lower-risk loan-to-values may see the best cuts first, while higher LTV buyers will still face tighter pricing. If a deal works today, secure it and keep reviewing
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Omer Mehmet
Managing Director at Trinity Finance
These are welcome cuts from Gen H and could deliver some decent savings for borrowers. In the current market, however, nothing can be taken for granted and rate reductions can be reversed very quickly. It's an unpredictable time on the rate front. Last week, for example, saw some major high street lenders raise their rates. The lower rates that some borrowers are holding out for are by no means guaranteed.