A number of smaller mortgage lenders, including Keystone and MHBS, have announced rate reductions across their mortgage products.
This follows similar announcements from larger lenders NatWest and HSBC, both of which announced rate reductions across their mortgage range this week.
Specialist lender Gen H has followed suit and has made a number of changes across its product range.
The changes include five-year homebuying bundle rates at 95 per cent LTV being reduced to 5.86 per cent (with a £999 fee) and 5.84 per cent (without fee).
Five-year bundle rates at 90 per cent also saw a reduction, falling to 5.78 per cent and 5.84 per cent with a £999 fee and without a fee respectively.
It was also announced that two-year rates had been dropped between 12-15bps across all products.
Speaking on the announcement Gen H chief commercial officer, Pete Dockar, commented: “We don’t think it’s fair to penalise affordability - or deposit-constrained borrowers with high rates.”
Docker also committed to being in lockstep with “the Big Six” as swap rates allow “dropping rates wherever we can.”
Gen H’s rate changes are currently live for both broker and direct customers.
Gen H was not alone in reducing its rates as MHBS made a similar announcement.
MHBS reduced fixed rates across its range of mortgage solutions by up to 0.35 percentage points.
As a result, residential rates start at 5.84 per cent variable and 6.04 per cent fixed for tier one cases, including joint borrower sole owner, second homes and simple annexes.
Keystone Property Finance also announced further reductions to its mortgage rates, specifically across its five-year fixed rates.
These rates have been reduced by up to 0.15 per cent as of yesterday (August 5).
However, Keystone’s changes were not just limited to rate reductions as it also announced the introduction of new mortgage products.
These included new two-year product transfer and switch & fix products, and a new green 80 per cent LTV product for properties with an EPC of A or B.
These reductions were welcomed by John Charcol mortgage technical adviser, Nicholas Mendes, who stated: “It's good to see the specialist lenders make these changes.”
He explained that the reductions shows “the level of appetite and demand” to attract business is not being limited to the main stream lenders.
“This is exactly the type of activity we need which spurs other lenders to follow suit,” he added.
tom.dunstan@ft.com
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