Gen H has cut the rate on its New Build Boost mortgage scheme by 15 bps, taking the headline rate to 6.14% and the effective rate to 5.17% for buyers using the lender's 5% deposit new build product. The cut is part of a wider repricing across Gen H's range – its third round of reductions in three weeks – as falling swap rates give lenders room to reduce ahead of an active summer market.
The broader changes, effective from 5:30pm on 29 June and live across Gen H's full broker panel, include:
- All 2- and 3-year fixed rates down 15 bps
- 5-year rates at 80% LTV and below down 10 bps
- 5-year rates at 85% and 90% LTV down 5 bps
Two-year swap rates have fallen close to 20 bps over the past month and five-year swaps around 15 bps, even as the Bank of England held base rate at 3.75% for a fourth consecutive time on 18 June. Gen H's latest move follows cuts of up to 20 bps on its five-year products and 15 bps on two-year products earlier in June.
Gen H is accepting expressions of interest from brokers who wish to advise on the New Build Boost scheme. The scheme pairs an 80% mortgage with a 15% interest-free equity loan, letting buyers including foreign nationals purchase a new build home with just a 5% deposit.
The borrower only pays interest on the 80% main mortgage, making for a blended rate of just 5.17%. This differs from a standard 95% mortgage where the borrower pays interest on the full amount borrowed, so brokers comparing New Build Boost against mainstream 95% LTV deals (currently priced around 5.25%–5.4% at lenders like Nationwide and first direct) should compare on monthly cost and total borrowing structure, not the headline rate alone.
Gen H has approved in principle over £150m in lending through New Build Boost since its March 2025 launch, with foreign nationals and healthcare workers making up a large share of applicants.
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.”
