Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Gen H and Principality Announce Rate Reductions
Gen H has implemented price cuts on a range of its mortgage deals, with the latest reductions taking effect yesterday. This marks the third round of rate cuts by Gen H in three weeks.
The lender has lowered the headline rate on its New Build Boost product by 15 basis points to 6.14%, resulting in an effective rate of 5.17%. The New Build Boost combines an 80% mortgage with a 15% interest-free equity loan, enabling buyers to purchase new-build properties with a 5% deposit. Borrowers pay interest only on the 80% mortgage portion, which Gen H states brings the effective rate across the full 95% borrowed to 5.17%.
Additional reductions from Gen H include two and three-year fixed rates, which have been trimmed by 15 basis points, and five-year fixed rates up to 80% loan-to-value (LTV), which have been reduced by 10 basis points. Five-year fixed rates at 85% and 90% LTV have also been cut by 5 basis points. Gen H attributes these changes to falling swap rates.
Principality Building Society is set to lower product transfer rates by up to 25 basis points starting tomorrow. The reductions will apply to residential two-year fixed and two-year discount rates at 65% LTV, as well as buy-to-let two-year fixed and discount rates at 75% LTV. Holiday let five-year fixed and discount deals at 60% and 75% LTV will also see a 25 basis point reduction. Other product transfer rates at Principality will be cut by up to 20 basis points.
These changes may be relevant for letting agents and inventory clerks monitoring mortgage product trends and affordability for clients in the UK property market.
Source: Mortgage Strategy