Gen H has made rate increases by up to 25 basis points after gilt yields increased overnight due to the Iran conflict.
The lender was set to make price cuts but with five-year gilts up around 19bps today, the two-year up around 12bps and the 10-year up about 14bps, Gen H has been forced to raise prices.
Several mortgage lenders also due to make rate cuts today are carrying out emergency repricing.
Gen H says: “The war in Iran is creating uncertainty in global markets and as a result, swap rates have shot up overnight.”
As part of the changes, Gen H has increased the 60% loan-to-value (LTV) two-year rate by 20 basis points, while 70% to 80% LTV two-year rates will rise by 15bps.
In addition, 85% to 95% LTV two-year rates will increase by 25bps and 60% to 80% LTV three- and five-year rates will rise by 15bps.
Three- and five-year rates between 85% and 95% LTV will increase by 20bps and Gen H’s New Build Boost rate will go up by 20bps to 5.89%.
Earlier today, Gen H chief commercial officer commented: “The war in Iran – specifically the hampered distribution of oil through the Strait of Hormuz – is already having an effect on global financial markets and swap rates are no exception.”
“Pricing teams at mortgage lenders across the country are deep in discussions right now, frowning at their spreadsheets, deciding whether they need to price up or if they can hold – and for how long.”
“This is a bit of a blow to the mortgage market because, for the first time in recent memory, buyers were feeling really optimistic; steady house prices and lower rates were driving healthy demand. But if there’s anything we’ve had to get used to in the last few years, it’s this kind of volatility. So as ever, I return to the one piece of consumer advice that never changes: talk to your broker and lock in a rate if it’s right for you.”
Elsewhere, Vida Home Loans has announced it will withdraw the 11 new business buy-to-let limited edition products at the close of business today.
CHL Mortgages will also withdraw its limited edition range from 5pm tomorrow.
