Gen H has cut mortgage rates for borrowers with smaller deposits by up to 20 basis points (bps), while increasing pricing across parts of its lower loan-to-value (LTV) range.

The lender has reduced its two-year fixed rates at 85% to 90% LTV by 20bps, with products now starting at 6.74%.

Three-year and five-year fixed rates in the same LTV band have both fallen by 5bps, with pricing starting at 6.69% for each term.

However, Gen H has increased rates at 70% to 80% LTV. Two-year fixed rates have risen by 10bps to start at 6.04%, although its special product for loans of £500,000 or more at 80% LTV is available from 5.84%.

Three-year fixed rates have increased by 5bps to start at 6.29%, while five-year fixed rates have also risen by 5bps, with pricing beginning at 6.33%.

The revised products are already available to brokers on Gen H’s panel.

MARKET VOLATILITY

The repricing comes against a backdrop of continued uncertainty in mortgage funding markets, with lenders responding to movements in swap rates and concerns over inflation.

Moneyfacts has linked upward pressure on swap rates to the escalating US-Iran conflict, which has renewed concerns about the inflation outlook. Further volatility is expected around the Autumn Budget.

Gen H gives brokers on its panel two full business days’ notice of rate changes, allowing them to secure existing pricing for clients before increases take effect where possible.

Sara Palmer, chief distribution officer at Gen H, said: “Markets have been volatile lately, so we’ve done what we can to support borrowers with smaller deposits even amidst these upward price pressures.

“Last year, the pre-Budget jitters drove a good deal of uncertainty in the market; this year it’s geopolitical tension. We will look to price down further as soon as we can, as aspiring homeowners could really use a break.”