Generation Home (Gen H) has replaced its standard variable rate (SVR) of 7.5% with a Bank of England Base Rate Tracker +3% for a reversion rate of 6.5%.
The lender says the decision has been taken “to provide greater transparency” for its customers.
Gen H has also revisited its mortgage rate stress assumptions.
Some of the changes include two-year fixed rates on products between 60% and 80% LTV being reduced by 2 basis points to 4.97% with a fee of £999.
In addition, two-year fixed rates on products between 60% and 80% LTV have dropped by 6 basis points to 5.19%, with no fee.
Gen H chief executive Will Rice says: “Replacing our SVR with a tracker reversionary rate will help customers better understand the cost of their mortgage and how market trends could impact them. This is another way we’re setting a new standard for transparency in the mortgage market.”
Commercial director Pete Dockar adds: “As the mortgage industry prepares for the higher standards of the FCA’s Consumer Duty, we believe the opacity of traditional SVR’s will be increasingly challenged. Tracker rates represent a readily understood, fair and unambiguous alternative to SVR’s that is especially important in the current economic climate.”
