Gen H has replaced its standard variable rate (SVR) of 7.5% with a Bank of England Base Rate Tracker +3% for a reversion rate of 6.5%.
Gen H said it had taken the decision to provide greater transparency for customers. It added that, when compared to SVRs, tracker rates are easier to understand and provide greater certainty of outcome for customers.
With this new, lower reversionary rate, Gen H has also revisited its mortgage rate stress assumptions, helping bolster customer affordability in a challenging economic landscape.
Making this move, Gen H will be one of very few lenders in the market on a tracker reversionary rate.
Will Rice, Gen H CEO, said: “We’re always looking for ways to empower our customers with the knowledge they need to make the right financial decisions for themselves.
“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, commercial director added, “As the mortgage industry prepares for the higher standards of the FCA’s Consumer Duty, we believe the opacity of traditional SVR’s will be increasingly challenged.
“Tracker rates represent a readily understood, fair and unambiguous alternative to SVR’s that is especially important in the current economic climate.”
At the same time, Gen H has also made reductions across its 2-year fixed rate product range.
The highlights include 2-year fixed rates on products between 60% and 80% LTV being dropped by 0.2% to 4.97% with a £999 fee or by 0.6% to 5.19% fee free.
