MortgagesJul 1 2015

Platform lowers mortgage rates

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Platform has made a number of reductions to rates across its range of two-, three- and five-year fixes at varying LTV levels.

Two-year fixes at 60 per cent LTV has been discounted to 1.24 per cent from 1.29 per cent with £1,499 product fee. The rate is 1.39 per cent with a cheaper product fee of £999.

For borrowers with a 30 per cent deposit, fixes have been reduced to 1.44 per cent and 1.64 per cent with a £1,499 and £999 product fee respectively. The rate for the fee-free option has also been discounted to 1.99 per cent.

At 85 per cent LTV, two-year fixes are now available at 2.39 per cent, while the rate at 90 per cent LTV is 3.49 per cent – both without a product fee.

In addition, the fixed rate for five-year fixes has been cut, with a discounted rate of 2.29 per cent and 2.39 per cent now available at 60 per cent LTV, with £1,499 and £999 product fees respectively.

Notable reductions include 2.74 per cent to 80 per cent LTV, with a £1,499 product fee, and 3.94 per cent to 90 per cent LTV fee-free.

The lender’s three-year fixes now stand at 2.89 per cent at 85 per cent LTV, and 3.84 per cent at 90 per cent LTV.

Provider view

Stuart Beattie, Head of Mortgages at Platform, said: “Our new range should have something for all borrowers whatever their budget, with market-leading deals available for borrowers with large or small deposits, and a wide range of fee and fee-free options to choose from.”

Platform offers LTV bands of 60, 70, 75, 80 and 85 per cent on selected products. All deals come with a free standard valuation for remortgagers and purchasers, plus free legals for remortgagers. A cashback of £250 is also available on selected products.

Adviser view

Commenting on the two-year fix at 1.24 per cent to 60 per cent LTV with £1,499 product fee, Matthew Harris, a director of Fife-based Dalbeath Financial Planning said: “This is a low rate, but the £1,499 fee makes it uncompetitive until you get up to house prices of above £400,000. Even at that level there is an Accord mortgage with no fee and a 1.79 per cent rate that is still marginally cheaper. But it’s good to have as an option for house purchases of this level or above, so we welcome Platform’s rate cut.

“I don’t think criteria are relaxing much. Mortgage companies are still being strict about how much they will lend, and are checking the bank statements and payslips of applicants more diligently than ever to ensure the mortgage is affordable. There is perhaps a greater willingness to help first-time buyers, which is a welcome change.”

Charges

Charges range from £0 to £1,499.

Verdict

As industry experts continue to speculate as to when the Bank of England will raise record low base rates, this move by Platform is welcome. Although the rates are not market-leading, they are certainly noteworthy, and contribute to the ever-competitive mortgage market.

Although we are unlikely to see a return of the 100 per cent LTV mortgage, the apparent growth in the number of 80 per cent and 90 per cent loans is likely to appeal to first-time buyers.