Gen H makes sweeping mortgage rate cuts by up to 0.25%: "Music to the ears of borrowers"
GEN H has launched a series of “significant” rate cuts across its mortgage range for shorter term products, with savings of up to 0.25% – as brokers say it's "music to the ears of borrowers".
The cuts are most pronounced in the mid-Loan to Value (LTV) ranges, with reductions of up to 0.25% on all products between 60% and 80% LTV, including interest-only options.
Key rate changes include:
● Reductions from 0.2% to 0.25% on all capital repayment rates at 60% LTV.
● Cuts of up to 0.25% across all products between 60% and 80% LTV.
● 85-90% LTV 2-year fixed rates are reduced by 0.15% to 0.2%.
● Part and part interest-only products at 95% LTV are down 0.15% to 0.2% for 2 and 3-year fixed rates.
● The New Build Boost rate is cut by 0.2% to 5.79% – its lowest ever rate.
Sara Palmer, Director of Sales and Distribution at Gen H, said: “We know brokers are facing a challenging landscape, and ongoing market volatility is not making their job any easier.
“That’s why we felt it was critical to make a decisive move to pass on as many rate cuts as we possibly could. By targeting deep cuts across our range, we’re sending a clear message: responsible rate reductions are possible, and we will always price down when we can responsibly do so.”
Brokers have welcomed the news.
Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said: “These are significant rate cuts from Gen H, and as a smaller lender, their ability to re-price quickly if the market improves is always impressive.
"But if they are the only lender to take this opportunity, we could see these rates fall back quickly. Shorter-term deals are certainly seeing the best improvements in rates, and longer-term options are becoming more expensive across the market.”
Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, called the move “encouraging”.
She said: "Reductions of up to 0.25% definitely cut through the noise and will be music to the ears of borrowers. This is an encouraging move from Gen H and the hope is that other, larger lenders follow suit.
"It's an uncertain period ahead of the Budget and rate cuts have the potential to keep the market moving."
Ken James, Director at London-based Contractor Mortgage Services, questioned how long Gen H can keep rates low.
He added: “Rate drops of any percentage are a welcome change in the current climate.
"Gen H do want to shake up the market with innovative products and out-of-the-box thinking but how long will they be able to hold these price drops against the uncertainty of the market? Not for long in my opinion.”
Omer Mehmet, Managing Director at Welling-based Trinity Finance, said it's the first sign of positivity in the market after “months of caution”.
He continued: “Gen H trimming rates by up to 0.25% shows they are getting ahead of the curve and trying to capture momentum before the Budget. It is a smart move that signals renewed competition in the market rather than just a reaction to falling swap rates.
"Other lenders will likely follow if the cuts spark demand, but borrowers should not wait too long as pricing could shift again depending on what the Chancellor announces. For now, it is a welcome sign that lenders are starting to loosen up after months of caution.”
