GEN H has cut its mortgage rates by up to 0.3% but brokers say “it’s not a guaranteed turning point yet”.
The cuts include two-year 60% to 80% Loan to Value (LTV) rates dropping 0.3%, five-year 85% to 90% LTV rates dropping 0.21% and two-year 80% to 90% LTV rates dropping 0.11%.
These cuts target both home-movers with larger deposits and first-time buyers with 5% and 10% deposits.
This comes as Santander lowered its rates by up to 0.23% on Friday – while NatWest said it was increasing across its range last week.
Sara Palmer, Sales and Distribution Director at Gen H, said: “What better way to kick off summer – or at least a heat wave – than with big rate reductions.
“It is a priority for our team to move as quickly as we can when swap rates fall so we’re able to support even more aspiring homeowners wherever possible. I hope these cuts mean a new round of happy buyers will have keys in hand before the summer is out.”
Experts said the easing of tensions in the Iran war has helped – but they warned that sentiment could change very quickly and this is not a turning point yet.
These are welcome cuts from Gen H
Nouran Moustafa, Practice Principal at Roxton Wealth, cautioned against any suggestion that cuts are going to keep going down.
She added: “Gen H’s cuts are a welcome sign, especially for first-time buyers and movers who have been stuck on the edge of affordability, but I would not call this a guaranteed turning point yet. What we are seeing is lenders moving quickly when swap rates give them room, and that is encouraging, but mortgage pricing is still very sensitive.
“If tensions in Iran are genuinely easing, that could help calm oil markets, inflation expectations and funding costs, which may support further lender competition. But borrowers should not assume geopolitics has suddenly stopped mattering. One headline can move sentiment quickly, and rates are still being shaped by inflation, gilt yields, swaps and expectations for the Bank of England.
“My prediction is not a dramatic collapse in rates, but a gradual, patchy improvement. Stronger borrowers and lower-risk loan-to-values may see the best cuts first, while higher LTV buyers will still face tighter pricing. If a deal works today, secure it and keep reviewing.”
Omer Mehmet, Managing Director at Welling-based Trinity Finance, said this is good news for borrowers.
He added: “These are welcome cuts from Gen H and could deliver some decent savings for borrowers. In the current market, however, nothing can be taken for granted and rate reductions can be reversed very quickly.
“It’s an unpredictable time on the rate front. Last week, for example, saw some major high street lenders raise their rates. The lower rates that some borrowers are holding out for are by no means guaranteed.”
If tensions in Iran are genuinely easing, that could help calm oil markets
Babek Ismayil, CEO at homebuying platform OneDome, said he expects more competition to return to the market.
He added: “These cuts from Gen H are another sign that lenders are becoming more competitive again as funding costs begin to ease, which will be encouraging for buyers who have spent months waiting for affordability to improve. Products aimed at higher loan-to-value borrowers are especially important because first-time buyers have been under the greatest pressure from elevated mortgage rates and rising living costs.
“That said, the mortgage market remains highly sensitive and lenders are still reacting quickly to changes in swap rates and wider economic sentiment. While we are seeing more positive movement in pricing, borrowers should not assume rates will fall consistently from here, as inflation expectations and Bank of England policy will continue to shape the market over the coming months.
“My expectation is that we will continue to see gradual competition returning rather than a sudden rate war. Buyers should benefit from improving choice and slightly better affordability, but the era of ultra-cheap borrowing is unlikely to return anytime soon.”
