Gen H has taken significant steps to support homeowners during the current cost-of-living crisis by introducing a new revert rate of Bank of England base rate +2% for new business, positioning it as one of the lowest in the residential market. Additionally, the company has reduced its standard variable rate (SVR) for existing customers by 2% to 7.25%.
Understanding that homeowners might opt for a standard variable rate or revert rate for various reasons, such as the flexibility to make overpayments without fees or uncertainty at the end of a fixed-rate term, Gen H is committed to offering rates that are as affordable as possible.
Pete Dockar, chief commercial officer at Gen H, commented on the initiative: “For many homeowners, variable rates are a frightening thing, because they’re typically much higher than the fixed rates available to lock in.
“We don’t want to encourage people onto the revert rate, but we realize that sometimes, life happens – you might miss your deadline to lock in a new fix, you may want to wait for lower rates to come along, or you may want the flexibility to make big overpayments without extra fees.
“In all of these cases, customers deserve a more affordable alternative to the opaque variable rates offered by many high street banks. Homeowners shouldn’t be punished for not locking in a fix.”
The reduction in the revert rate and SVR aims to protect homeowners from potential payment shocks if they do not secure a new fixed rate at the end of their term. Introduced in January 2023, the tracker revert rate was designed to provide clarity on mortgage costs and how market changes might affect personal finances.
Gen H has been proactive in offering innovative solutions to support first-time buyers, including unique affordability and deposit options. In December 2023, Gen H incorporated Experian Boost data into its credit decision-making process and reintroduced sub-4% rates, both aimed at making homeownership more accessible.
