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Gen H cuts rates by up to 25bps in "a welcome ray of sunshine" for borrowers

ended 23. October 2024

Gen H has announced cuts across its higher LTV 2-, 3- and 5-year fixed rate mortgage products of up to 25 bps. As uncertainty around the autumn budget has dominated headlines in recent weeks, many lenders have been pricing up, worried the looming fiscal event could torpedo the economy — but Gen H have gone the other way. 

  • 5-year 90%/95% LTV rates will decrease by 25 bps
  • 2- and 3-year 90%/95% LTV rates will decrease by 16 bps
  • 2- and 3-year rates up to and including 85% LTV will decrease by 15–25 bps

Experts have given their commentary on the cuts, below. 

8 responses from the Newspage community

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Editor
Andrew Montlake
Managing Director at Coreco
Unlike some lenders, Gen H appears to be looking beyond the Budget and considering the broader economic landscape. Unless the Budget delivers an exceptionally negative response from the markets, we can expect another rate cut from the Bank of England in November, which is reflected in their strategy. It’s also encouraging to see a lender prioritising support for borrowers who need it most, particularly those with smaller deposits.
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Darryl Dhoffer
Founder at The Mortgage Geezer
The clocks go back by one hour this weekend, reducing daylight viewing time for prospective buyers. As we approach Christmas, the market is becoming less active, with many consumers awaiting the outcomes of the upcoming Budget, which could be decisive for those currently hesitant to act. At least Gen H is making an effort to fill their Christmas stockings early with these rate cuts.
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Dariusz Karpowicz
Director at Albion Financial Advice
It looks like Gen H didn't get the doom-and-gloom memo about the Budget. While other lenders are playing it cautious, they're boldly slashing rates faster than a Black Friday sale. This maverick move to cut rates across their higher LTV products by up to 25 basis points is particularly interesting. It's a clear vote of confidence in the market, especially for first-time buyers who typically need those higher LTV mortgages. The timing is fascinating - just as most lenders are pricing up due to Budget jitters, Gen H zigs while others zag. Either they know something we don't, or they're making a calculated gamble that the Budget won't be the horror show some are predicting. Either way, this rate-cutting spree is a welcome ray of sunshine in what's been a cloudy mortgage market lately.
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Rohit Kohli
Director at The Mortgage Stop
Despite being impacted by market movements much harder than the big boys, it seems like smaller lenders like Gen H are more confident in the market and able to look at ways to help borrowers rather than protect their bottom line as the first priority. The Budget can't come soon enough to put all the speculation to bed.
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Simon Bridgland
Director at Charwin Private Clients
Twice within the space of a week, those needing to borrow at a higher loan to value will feel the warm glow that a generous reduction of fixed interest rates can give. While some lenders are appearing to feather their own nests by increasing their rates, Gen H are handing out hot deals keeping borrowers warm into the New Year.
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Ben Perks
Managing Director at Orchard Financial Advisers
Gen H buck the trend of rising rates ahead of the Autumn Budget. They’ve shown a real intent to lend and an eagerness to pick up business when others are being cautious. It’s great to see and helps to fuel the optimism that once this Budget is out the way, normal service will resume.
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Elliott Culley
Director at Switch Mortgage Finance
Gen H have had high interest rates for a while so to see them reduce when other lenders have increased is not overly significant. Recent increases in SWAP rates will not have affected Gen H as much as the lenders who were being aggressive with their rate cuts. This is probably also a business decision to try and attract more borrowers.
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Patricia McGirr
Founder at Repossession Rescue Network
As more and more borrowers seek to manage household finances, rate reductions on mortgage costs are always going to be welcome. As the biggest and most important expense, it helps to know what you will pay into the future. This news suggests Gen H are seeking to attract new business in a competitive market.