The reductions by Gen H took effect yesterday and were the third round of cuts in three weeks.

The lender lowered the headline rate on its New Build Boost by 15bps to 6.14%, taking the effective to 5.17%.

The product combines an 80% mortgage with a 15% interest-free equity loan, allowing buyers to purchase a new-build property with a 5% deposit.

Because borrowers only pay interest on the 80% mortgage element, Gen H says the effective rate across the full 95% borrowed is 5.17%.

Other reductions yesterday included two and three-year fixed rates trimmed by 15bps, five-year fixed rates up to 80% LTV down by 10bps.

Five-year fixed rates at 85% and 90% LTV fell by 5bps.

Gen H says the changes reflect falling swap rates.

At Principality, product transfer rates are coming down by 25bps on residential two-year fixes and two-year discount rates at 65% LTV.

Buy-to-let two-year fixes and discount rates at 75% LTV are also falling by 25bps.

Holiday let five-year fixes and discount deals at 60% and 75% LTV will drop by the same margin.

The lender is cutting other product transfer rates by up to 20bps.

Gen H sales and distribution director Sara Palmer says: “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.”