Gen H has introduced rate cuts of up to 0.25%, in contrast to the increases announced today by larger higher street lenders.
The reductions included 5-year rates up to and including 80% loan-to-value (LTV) decreasing by 0.25%, 5-year rates above 80% LTV decreasing by 0.19% and 2-year rates up to and including 80% LTV decreasing by 0.16%.
The new rates will go live from tomorrow, Tuesday 12th March at 5:30pm.
Newspage asked brokers for their thoughts on why Gen H are going one way while other lenders are going the other.
Reaction:
Gary Bush, financial adviser at MortgageShop.com:
“It seems the only way is up, unless you’re a new-breed mortgage lender.
“Gen H seems to understand the money markets more than the old school lenders and is thankfully reducing its fixed rates by up to 0.25%.
“To see the majority of lenders heading north with rates at a time when swaps are flying south adds to consumer confusion.
“A good show from Gen H today.”
Simon Bridgland, broker and director at Release Freedom:
“Gen H have provided some much needed relief to soothe the pain borrowers have been feeling of late.
“Given it’s only the beginning of the week, there’s still time for other lenders to follow their lead with some equally tempting deals and reintroduce the feel-good factor that has fizzled out in recent weeks.
“Finally some good news as Monday draws to a close.”
Richard Jennings CeMAP, founder and managing director at Richard Jennings Mortgage Services:
“This is a very welcome announcement from Gen H amid all the rate rises.
“With swap rates shifting, this should hopefully be the beginning of several lenders following suit and reducing their rates accordingly.
“This will inject a bit of confidence back into the market after another rollercoaster day.”
Justin Moy, managing director at EHF Mortgages:
“It’s great that Gen H have stirred the market with an announcement of rate cuts as opposed to rises.
“Whilst not a large mortgage lender, their innovation and speed to make positive change is welcome, and hopefully this will act as a catalyst for other lenders to follow in the coming days.”
Imran Hussain, director at Harmony Financial Services:
“I did not expect to see any rates cuts at a time where the majority of the market seems to be increasing rates.
“This is welcome news as I shall take every positive I can currently and I am sure borrowers will be the same.”
Stephen Perkins, managing director at Yellow Brick Mortgages:
“GenH are fast becoming beloved by brokers and borrowers for their common-sense approach to lending and their intention to price products as fairly as possible for borrowers.
“Take a bow GenH.”
Akhil Mair, director at Our Mortgage Broker:
“It’s refreshing to see Gen H taking a different approach by announcing rate cuts of up to 0.25%, especially when many other major banks are going in the opposite direction with rate increases.
“Their commitment to offering lower rates will undoubtedly be welcomed by all, providing individuals and families with more affordable options when it comes to securing mortgages and managing their finances.
“This proactive step from Gen H reflects a customer-centric approach and sets a positive example for the banking industry as a whole.
“It’s encouraging to see a focus on providing value and flexibility to customers during these challenging times.”
Rohit Kohli, director at The Mortgage Stop:
“With so many of the major lenders putting up rates today, it’s welcome news that an industry innovator like Gen H breaks the pattern by reducing rates.
“Much kudos to Gen H for this but even more questions need to asked of the likes of Santander, NatWest and Co-op who have all upped rates for a reason no one can fathom.”
