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Gen H launches mortgage and legals service with lower rates

  • 14/03/2023
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Gen H launches mortgage and legals service with lower rates
Gen H has launched a service for first-time buyers which combines its mortgage and legal services at reduced interest rates.

This gives borrowers access to mortgages which are up to 0.35 per cent lower than its standard offering and access to the lender’s conveyancing service Gen H Legal. 

Two, three and five-year fixed mortgages up to 95 per cent loan to value (LTV) are available in the range. The service will also provide free valuations. 

The deal is available both to direct and intermediated applicants through Gen H partners.

Gen H plans to launch the service to home movers and remortgagors in the future. 

The lender said it would also use its profits to enable it to offer lower rates to borrowers. 

The range will be available from 15 March. 

Will Rice, co-founder and CEO of Gen H, said: “The UK housing market is not fit-for-purpose. Consumers have to navigate a minefield of different service providers to achieve their homeownership goals and the process is loaded with complexity and unnecessary cost.  

“The launch of our first-time buyer bundle is a big step towards simplifying this and returning value to our customers. We hope that other lenders will embrace this approach and join us in driving the housing market change that consumers are crying out for.” 

Pete Dockar, commercial director of Gen H, said: “The launch of the first-time buyer bundle represents another mortgage market first for Gen H. This exciting development means that our broker partners and customers can finally experience a new standard for conveyancing from the Gen H team they already know and trust.” 


An innovative idea? 

Mortgage brokers reacted to Gen H’s announcement with some saying it was a forward-thinking approach while others were skeptical about how it would work. 

Justin Moy, managing director at EHF Mortgages, said: “Ultimately, anything that supports first-time buyers, keeps costs down and passes on any rate savings is going to be popular. As long as the service from the legal team is proactive with everyone involved in the buying process, this could be an attractive model to copy for other challenger lenders.” 

James Vince, managing director of Castle View Finance, said Gen H was proactive at finding solutions to problems in the purchasing market. 

“Incentives like free valuations and premium legal services show a sense of knowledge in this space, as we often see these two areas as the areas that can disrupt the homebuying process.  

“Profits going back in to further support rates is a positive headline, however, the product offering and wider solution should be enough to sell the product range in itself,” he added. 

Scott Taylor-Barr, financial adviser at Carl Summers Financial Services, said his first reaction to the news was “not positive”. 

He added: “The mortgage adviser and conveyancer are the only two parties that are employed by the buyer and so our responsibility is to them. My concern with this is that the conveyancer is now employed by the lender, so whose interests are they looking out for? The first-time buyer, or the lender that is paying them?  

“The jury is out for me on this one at the moment. I’d need to learn more about how it intends to work before I’d be comfortable recommending it to a client.” 

Rhys Schofield, managing director of Peak Mortgages and Protection, said it was a good idea in theory but there could be downfalls. 

“You may still be left with more in your back pocket going to a top sourcing lender and paying for your own conveyancer where you can actually choose a firm based on their reviews and service rather than having a particular firm forced on you.  

“The other pitfall I can see is what happens if a case ends up not going through with Gen H, as having to change lenders happens more often than anyone cares to admit. Does the legal process have to start again? That could add months onto a property transaction. I commend Gen H for trying to make things easier for first-time buyers and this will grab headlines but I don’t think it’ll be easy to pull off,” Schofield added. 

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