Gen H is introducing a Bank of England base rate +2% revert rate for new business and lowering its standard variable rate (SVR) for existing customers by two percentage points to 7.25%.
The lender says the lower revert rate and SVR will help insulate homeowners from possible payment shocks if they don’t lock in a new fix at the end of their term.
Gen H retired its SVR and introduced its revert rate in January 2023. The tracker revert rate is intended to help customers better understand the cost of their mortgage and how wider market activity can impact their finances.
Pete Dockar (pictured), Gen H’s chief commercial officer, said: “For many homeowners, variable rates are a frightening thing, because they’re typically much higher than the fixed rates available to lock in.
“We don’t want to encourage people onto the revert rate, but we realise that sometimes, life happens – you might miss your deadline to lock in a new fix, you may want to wait for lower rates to come along, or you may want the flexibility to make big overpayments without extra fees.
“In all of these cases, customers deserve a more affordable alternative to the opaque variable rates offered by many high street banks. Homeowners shouldn’t be punished for not locking in a fix.”