“It’s beginning to look a lot like Christmas” – brokers react to Gen H rate cuts

This morning, Gen H introduced another round of rate reductions ahead of the festive break, cutting its entire product range by up to 0.25%.

As part of the recent round of changes, all homebuying bundle and standard 5-year rates up to 80% loan-to-value (LTV) are now sub-5%, 60%, 70%, and 75% LTV rates have been reduced by up to 0.20%, and 80% LTV mortgages have been reduced by up to 0.25%.

The rates are already live for both broker and direct customers, with reductions across both the lender’s standard and homebuying bundle range, as well as for remortgaging customers.

Commenting on the rates, Ken James, director at London-based Contractor Mortgage Services, said: “It’s beginning to look a lot like Christmas.

“Rate reductions have been like buses all coming along at once and now we have a smaller lender joining the queue of potential options for borrowers.

“These are good levels of reductions and a great way to show that Gen H are open for business as we close in on the end of the year.”

Graham Cox, founder of Bristol-based Self-Employed Mortgage Hub, also welcomed the news: “As a go-to niche lender for when extra flexibility or borrowing is required, Gen H’s rates have always been higher than the high street lenders.

“But with their 2-year fixes now just a smidge over 5%, albeit if you take out your conveyancing through them, they’re an attractive proposition for those ‘tricky to place’ cases.”

Anil Mistry, director at Leicester-based broker RNR Mortgage Solutions, added: “This is fantastic news and let’s hope it’s a sign of things to come in January 2024 when we typically observe a surge in purchase transactions following the festive lull.

“Fingers crossed that the major high street lenders will also follow suit.”

However, Craig Fish, director at London-based independent mortgage broker Lodestone Mortgages & Protection, said Gen H was only really falling into line with other lenders.

He said: “It’s becoming the norm to see 5-year rates below 5%, which is great news, but these rates aren’t anything to celebrate.

“They are really only bringing Gen H into line with other lenders.

“What brokers now really want to see is a 5-year fix below 4% and some really low 2-year fixed rates.

“It would be nice if these rates also applied to those wishing to remortgage and not just for those purchasing.”

Looking forward, Michelle Lawson, director at Fareham-based broker Lawson Financial, is hoping for a more settled 2024: “It’s great to see more cuts from a specialist lender in the closing weeks of the year.

“2023 is ending on a positive note after a challenging 12 months and here’s hoping for a strong and settled 2024.”