Gen H has reduced rates across its higher loan-to-value mortgage range, with the largest cuts targeted at borrowers with smaller deposits.

The lender has announced reductions of up to 20 basis points across its 85% to 95% loan-to-value (LTV) products, with the most significant changes applying to mortgages at 95% LTV.

Under the revised pricing, two-year and three-year fixed rates at 95% LTV have been reduced by 20bps, while equivalent products at 90% and 85% LTV have been cut by 10bps.

The new rates are available immediately through brokers on Gen H’s panel.

Gen H said the changes follow an easing in swap rates after volatility earlier in the year, which had been driven by geopolitical tensions linked to the conflict in Iran. The lender said it had chosen to focus the largest reductions on higher LTV lending where first-time buyers are most commonly concentrated.

According to Nationwide Building Society’s Housing Affordability Report, a typical first-time buyer requires around £23,000 for a 10% deposit, a figure which can take an average earner almost six years to save. Deposit requirements are often significantly higher in London and other areas with elevated property values.

Sara Palmer, sales and distribution director at Gen H, said: “These cuts are market-driven, but we’ve made a deliberate choice to concentrate the biggest reductions at 95% LTV, where many first-time buyers are.

“A smaller deposit doesn’t make you an inherently riskier borrower; it just means you’re someone who hasn’t had a financial leg-up, or who’s been paying rent whilst also trying to save.

“Brokers should be taking another look at what’s now possible for those clients who were just outside affordability last week.”

The lender said the changes could help improve affordability for borrowers who are ready to purchase but have been constrained by higher borrowing costs associated with smaller deposits.