Rates are cut by up to 20bps
Fintech mortgage lender Gen H has announced a new batch of rate reductions across its mortgage product range, with the latest reprice offering cuts that range from eight to 20 basis points (bps).
Notable reductions include 18bps decrease on low loan-to-value (LTV) products for two- and five-year terms, and 20bps cut on three-year options. Rates for 95% LTV three- and five-year products remain unchanged.
The lender said the rate adjustments, particularly to three-year products, respond to a growing preference among brokers and clients for middle-ground mortgage terms amid market instability. The trend, Gen H pointed out, suggests a demand for shorter mortgage durations due to economic uncertainties, yet with many finding two-year options too expensive, three-year mortgages are becoming increasingly popular as a viable alternative.
In addition to previous rate cuts, Gen H has enhanced its offerings with improvements to affordability for income booster cases, leading to a significant increase in use of their affordability calculator.
It has also streamlined its product switching process, introducing a new journey that enables brokers to switch eligible clients quickly through Gen H’s intermediary platform, Gen H Pro.
“We’re all relieved to see swap rates moving in a positive direction following the Bank of England’s decision to hold rates last week,” said Pete Dockar (pictured), chief commercial officer at Gen H.
“Affordability is still the greatest limitation for aspiring homeowners in this country, along with deposit challenges which themselves bring about affordability limitations, so it’s critical we take every opportunity we can to reduce our rates, even if it’s only for a week at a time. I’m sure the homeowners who benefit from these lower rates agree, and that’s what matters.”
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