The changes include reductions to its two and five year fixed offers.
Generation Home reduced a range of its fixed rate mortgage options by up to 0.30% yesterday.
The decision comes after the lender made several changes to its product range last week. Notably, it set its revert rate to 6.5% in this raft of changes.
“Last week, we announced our decision to replace our SVR with a reversionary tracker rate to provide fairer, more transparent mortgages for our customers,” explained Pete Dockar, Commercial Director at Generation Home.
The reductions yesterday saw Generation Home make reductions to its two- and five-year fixed rate offers. In fact, the lender now offers a five-year fixed rate below 5%, the first time it’s listed this type of deal on the market since last summer.
However, there are several other lenders on the market which already offer rates below this threshold for similar terms.
These include Yorkshire Building Society, NatWest and MPowered Mortgages, to name a few. While you can view Generation Home’s offer in more detail below, you can compare it to other providers’ deals by using our charts.
Rate: 4.99% Fixed for five years before reverting to 6.50%
Initial period: Five years
Product fee: £999
Maximum loan-to-value: 80%
Representative example: £218,000 mortgage over 25 years initially at 4.99% fixed for 60 months reverting to 6.50% variable for term. 60 monthly payments of £1273.14 and 240 monthly payments of £1439.51. Total amount payable £423,119.80 includes loan amount, interest of £203,871, valuation fees of £200 and product fees of £999. The overall cost for comparison is 6.1% APRC representative.
When using our site to search the best mortgage deals, make sure to use our online mortgage calculator to get an understanding of how these rates affect your monthly mortgage payments. Click here to get started or scroll to the bottom of the article.
Despite the latest reductions, none of Generation Home’s mortgages appear on the Moneyfacts Best Buy tables. However, some of these new rates are among the lowest on the market.
First launched 30 years ago, the renowned Moneyfacts Best Buy Charts feature those products considered by Moneyfacts to represent the best in their product category. These tables can often be found in various national publications.
For example, it now offers a rate of 5.25% fixed for two years that requires a minimum deposit of 10%. More details of this mortgage, which may be of interest to first-time buyers, can be found in the chart below.
This deal now offers the second lowest rate on the market for this loan-to-value tier, and is only bettered by two different lenders. These are Digital Mortgages by Atom Bank and West Brom BS, which both offer a rate of 5.24%.
Rate: 5.25% Fixed for two years reverting to 6.50%
Initial period: Two years
Product fee: £999
Maximum loan-to-value: 90%
Representative example: £159,210 mortgage over 25 years initially at 5.25% fixed for 24 months reverting to 6.50% variable for term. 24 monthly payments of £954.06 and 276 monthly payments of £1067.53. Total amount payable £318,784.72 includes loan amount, interest of £158,326, valuation fees of £200 and product fees of £999. The overall cost for comparison is 6.5% APRC representative.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.