It also reduces its standard variable rate for existing customers
Fintech mortgage lender Gen H has introduced a Bank of England base rate plus 2% revert rate for new business to offer one of the lowest rates in the residential market.
It has also implemented a 2% reduction in its standard variable rate (SVR) for existing customers, setting it at 7.25%.
Gen H said the newly adjusted revert rate and SVR are designed not only to provide homeowners with flexibility but also to shield them from potential payment shocks if they choose not to lock in a new fix at the end of their term.
The lender initiated the retirement of its SVR and introduced the revert rate last year, aiming to enhance customer understanding of mortgage costs and the impact of broader market activities on their finances.
“For many homeowners, variable rates are a frightening thing, because they’re typically much higher than the fixed rates available to lock in,” remarked Pete Dockar (pictured), chief commercial officer at Gen H. “We don’t want to encourage people onto the revert rate, but we realise that sometimes, life happens – you might miss your deadline to lock in a new fix, you may want to wait for lower rates to come along, or you may want the flexibility to make big overpayments without extra fees.
“In all of these cases, customers deserve a more affordable alternative to the opaque variable rates offered by many high street banks. Homeowners shouldn’t be punished for not locking in a fix.”
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