Smaller lenders follow in the footsteps of major banks, such as Nationwide, by offering sub-5 per cent mortgage rates.
One such lender is Gen H which launched another round of rate cuts today (November 20) which included reductions of between 20 and 50 basis points across their 60, 70, 75, and 80 per cent LTVs at 2-,3-, and 5-years.
As a result, the lender has introduced a 2-year 60 per cent LTV at 4.99 per cent, 3-year at 4.84 per cent, and 5-year at 4.87 per cent, all with £999 fee.
This follows announcements from lenders, such as Nationwide which launched a sub-5 per cent two-year fixed rate mortgage recently, which brokers called a “watershed moment” for the market.
Speaking on this, Gen H chief commercial officer, Pete Dockar, commented: “It has been a very busy few weeks for our team as we’ve taken every opportunity to reduce our rates.
“These cuts are giving our customers even more options.”
Docker added that the lender is heading into December with “optimism” and is “thrilled” it has been able to move at pace to introduce selected sub-5 per cent rates before Christmas.
This was done while continuing to develop the “innovative” features that give so many buyers a “much-needed boost” onto the property ladder.
Keystone
Gen H was not alone in this with the specialist buy-to-let lender, Keystone Property Finance, also announcing rate reductions, with cuts of up to 20 per cent.
As a result of this reduction its standard range now starts from 4.64 per cent for a two year fix.
This was Keystone’s third consecutive week in which it reduced its rates and applied across its range.
Keystone Property Finance managing director, Elise Coole, said: “We hope that the series of rate cuts that we have made in quick succession gives confidence to the market.
“As we have pointed out previously, downward movement in rates isn’t always dependent on changes to Bank Rate.
“We take a flexible approach to pricing and will always endeavor to pass savings on to brokers and their clients wherever we can.
“In this case, we have been able to apply reductions right across our range giving all customers the competitive lending options.”
tom.dunstan@ft.com
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