Generation Home is increasing select mortgage rates by up to 15 basis points effective October 12, citing rising swap rates.
The bank announced increases in three- and five-year mortgage products.
All three-year interest rates will rise by 10 basis points, while five-year interest rates at 60-80% loan-to-value (LTV) will also rise by 10 basis points.
Five-year interest rates at 85-95% LTV will see a further rise of 15 basis points.
Generation Home’s new Build Boost will also increase by 15 basis points, with its rate moving from 6.75% to 6.90%. The lender states that this equates to an effective rate of 5.81%.
The changes will come into effect at 5.30pm on 12 October.
However, brokers looking to lock in current prices can submit cases before the deadline. Generation Home will then allow another seven calendar days to fill cases.
The lender also confirmed that if rates fall during this period, brokers will be able to switch to the lower rate through their dashboard.
Moneyfacts’ latest rate watch found that the average two-year fixed rate is now 5.97%, up one basis point from 5.96% at the same point last week.
The cost of the typical five-year fix is now 5.99%, up 3 basis points from last week, but 1 basis point lower than the average of 6% recorded on October 5.
