It also reduces rates across its two-year fixed rate product range
Fintech mortgage lender Gen H has announced that it has moved from a standard variable rate (SVR) of 7.5% to a Bank of England base rate tracker plus 3%, for a reversion rate of 6.5%.
The lender said that the decision has been taken to provide greater transparency for Gen H customers. It noted that compared to SVRs, tracker rates are “easier to understand and provide greater certainty of outcome for customers.”
Gen H, also known as Generation Home, clarified that this change from SVR to tracker is applicable to all new business.
With the new, lower reversionary rate, Gen H has also revisited its mortgage rate stress assumptions to help boost customer affordability in the challenging economic landscape.
Making this move, Gen H will be one of the few lenders in the market on a tracker reversionary rate, as indicated in the London & Country Mortgages’ SVR Watch report.
Meanwhile, Gen H has also made rate reductions across its two-year fixed rate product range. The highlights include:
- Two-year fixed rates on products between 60% and 80% LTV have dropped by two basis points to 4.97% with a £999 fee
- Two-year fixed rates on products between 60% and 80% LTV have dropped by six basis points to 5.19% with £0 fee
“We’re always looking for ways to empower our customers with the knowledge they need to make the right financial decisions for themselves,” Will Rice, chief executive at Gen H, said. “Replacing our SVR with a tracker reversionary rate will help customers better understand the cost of their mortgage and how market trends could impact them. This is another way we’re setting a new standard for transparency in the mortgage market.”
Pete Dockar (pictured), commercial director at Gen H, added that as the mortgage industry prepares for the higher standards of the FCA’s Consumer Duty, they believe the opacity of traditional SVR’s will be increasingly challenged.
“Tracker rates represent a readily understood, fair, and unambiguous alternative to SVRs that is especially important in the current economic climate,” he said.
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