Gen H has cut its New Build Boost rate by 15 basis points (bps) to 6.14%, which applies to the 80% main mortgage. Borrowers are required to contribute a 5% deposit, with the remaining 15% made up of shared equity interest-free loan.
The lender said this gives the borrower a blended rate of 5.17% when spread across the full 95% borrowed.
The cut is part of a wider repricing across Gen H’s range and is its third round of reductions in three weeks. All two- and three-year fixed rates have been reduced by 15bps, while five-year deals up to 80% LTV have been reduced by 10bps. Five-year fixed rates at 85% and 90% LTV are down by 5bps.
Gen H is accepting expressions of interest from brokers who wish to advise on the New Build Boost scheme.
Sara Palmer, sales and distribution director at Gen H, said: “We’ve cut rates three times in three weeks, and we’re not done – we’ll keep passing through the benefit of falling swap rates for as long as the market allows. This downward rate trajectory is a breath of fresh air after a turbulent few months. But with nearly 1.8 million fixed deals coming up for renewal this year, it matters that lenders move fast to pass through rate reductions – and that’s exactly what we’re built for.”
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Atom Bank launches near prime deal
Meanwhile, Atom Bank has launched a 95% LTV near prime proposition for borrowers with light adverse credit history on their files.
Borrowers cannot have received any defaults in the last 12 months and no more than one in the last 36 months. The unsatisfied default value must be less than £500.
Other criteria include no county court judgments (CCJs) in the last 36 months, and no more than one in the last 37-72 months, with a value of no more than £500 for unsatisfied CCJs. There must also be no mortgage arrears in the last 12 months, with no more than two months of mortgage arrears in the last 13-24 months.
Rates for the new 95% LTV near prime products start at 6.59% for a two-year fixed rate, with an arrangement fee of £1,995.
Alongside the launch, Atom Bank has also reduced rates in its existing near prime range, spanning 60-90% LTV, by 0.1%. As a result, rates start at 5.29%.
Richard Harrison, head of mortgages at Atom Bank, said: “Brokers have been calling for more options for near prime borrowers with modest deposits, so I’m certain this launch will be well-received. We have consistently listened and acted to refine our near prime proposition, ensuring it supports the types of cases brokers are seeing every day. Our Near Prime Index suggested that brokers are handling an increasing number of near prime cases and expect this to grow further, making it essential for lenders to deliver practical solutions.
“These products have been designed with a particular subset in mind, the borrowers who have only light adverse history – or little credit history at all. Combined with a small deposit, they can find it incredibly difficult to access a mortgage with many mainstream lenders. These new products aim to remove those barriers, ensuring borrowers can get onto, or move up, the housing ladder, even if they have an imperfect credit history.”
