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Gen H, TSB and Coventry announce cuts but brokers issue fees warning

Journalist: Justin Moy, Contributing Editor

ended 05. March 2025

Mortgage rates continue to be cut by lenders as competition warms up and Swap rates fall slightly. Gen H is cutting fixed rates by up to 0.3%, with improvements to their Core and Homebuying Bundle, and existing client products for renewals. Meanwhile, TSB has just launched a sub-4% 2-year fixed for their existing clients looking for a new deal, but it comes with a fee of £1495. Coventry BS have also announced cuts to both Interest Only and Offset deals, which will launch Friday. Newspage asked brokers for their views, below. Some warned borrowers against the high fees that often accompany headline-grabbing rates.

7 responses from the Newspage community

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Sean Horton
Managing Director at Respect Mortgages
The rate cuts should continue, with markets pricing in more Bank of England base rate reductions in 2025. However, we may need patience before the next move by Threadneedle Street given that inflation has edged up. Most buyers rushing to beat the April Stamp Duty changes will have already sorted their mortgages by now. The savvy ones, at least. For everyone else, today's competitive environment still offers good options. Remember to check the total cost of any deal. Those headline-grabbing rates often come with chunky fees attached so borrower beware.
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Iain Swatton
Director at Exemplar Financial Services
Mortgage lenders are turning up the heat on competition as swap rates ease, sparking a fresh round of rate cuts. With post-April stamp duty changes on the horizon, lenders are adjusting their rates to capture new business. In a climate where global uncertainty often dampens confidence, these proactive moves stand out as a positive signal for borrowers, proving that even in challenging times, competition can drive favourable outcomes in the mortgage market.
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Hannah Bashford
Director at Model Financial Solutions
Mortgage rate reductions are more than welcome at present with so much economic uncertainty. Borrowers coming off 2-year fixed rates, hoping to see a reduction, look set to benefit. The ongoing rate cuts will also soften the blow for those still lucky enough to be on low rates from five years ago. We await the Bank of England rate decision later this month.
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Ben Perks
Managing Director at Orchard Financial Advisers
This is more a tactical chess match than a rate war, but it's great news for borrowers either way. Lower rates are starting to produce more meaningful savings for borrowers each month, especially those coming off higher rates secured two years ago. This will improve confidence in the market and create more buoyant conditions. All eyes are now on this month's Bank of England rate announcement. If they reduce the base rate again, things could really take off.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
You have to give lenders credit. Despite inflation fears, stamp duty increases and likely forthcoming caution from the Bank of England, they are doing their best to drive the mortgage and property market forward. These rate cuts are all starting to add up but we need to see this trend continue.
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Justin Moy
Managing Director at EHF Mortgages
Amidst the political and economic turmoil, it's surprising that mortgage lenders still have the scope to deliver further rate cuts. We need to see continued momentum in lenders large and small reducing mortgage costs, if only to balance off other increases in home costs that are due just around the corner.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
Lenders continue to adjust rates downward as competition heats up, with Gen H, TSB, and Coventry BS all making notable reductions. Gen H’s 0.3% rate cut across its range adds more competitive options, while TSB’s sub-4% two-year fixed deal for existing clients is attractive. However, the £1,495 fee means borrowers must crunch the numbers to ensure it’s truly cost-effective. Coventry BS’s reductions on interest-only and offset mortgages signal broader market movement. With rates still fluctuating, borrowers should act strategically, securing deals that balance upfront costs with long-term savings.