Gen H has reduced rates on its 80% and 90% LTV products by 0.10%, bucking a trend of price increases across the mortgage market.
The new rates include 5.43% for 80% LTV with a £1,499 fee on a 5-year fix, 5.70% for 85% LTV with a £1,499 fee on a 5-year fix, and 5.74% for 90% LTV with a £1,499 fee on a 2-year fix.
The cuts apply to all 2-, 3- and 5-year products at these loan-to-value levels and are already available to more than 22,000 brokers on the lender’s panel.
The move follows adjustments to the lender’s loan-to-income ratio criteria earlier this summer.
These changes allow self-employed applicants to borrow up to 5.5 times their income, extend the same ratio to cases above 85% LTV, and lower the threshold for the gross income-based 4.49x LTI cap from £50,000 to £40,000. Income booster cases remain capped at 4.49x to safeguard affordability.
Since launch, the policy updates have delivered a 25% increase in application volumes, reflecting demand for higher LTI lending. Gen H said the latest rate cut is part of its broader strategy to support borrowers facing affordability challenges.
Pete Dockar, chief commercial officer at Gen H, said: “Every week, we dedicate time to answer one question: can we price down?
“If there are any reductions we can responsibly make, we will always do so. I think this reduction – which comes as most other lenders are pricing up – demonstrates that.
“But we do this because even ten basis points, especially at high LTVs, will make a difference for those incremental homeowners – for those just on the precipice. Those are the people we’ll always try to help.”
