Mortgages 

Up and down: rates seesaw for Platform

Platform has made a number of reductions across its range of fixed-rate buy-to-let products at 60 per cent LTV, while hiking rates for its mainstream two- and five-year fixes.

Two-year fixes have been discounted by 0.10 of a percentage point to 2.24 per cent and 2.44 per cent with product fees of £1,999 and £999 respectively, while the fee-free option is priced at 2.99 per cent.

A rate reduction of 0.05 per cent is applicable to three-year fixes. The product, with a £1,999 fee is priced at 2.79 per cent, and 3.04 per cent with a £999 product fee. The fee-free option is available at 3.74 per cent.

Five-year fixes have also been lowered by 0.10 percentage point to 3.34 per cent with a £1,999 product fee, 3.54 per cent with a £999 product fee, and 4.09 per cent fee-free.

All products come with free legals for remortgage customers. A cashback of £250 and £500 is also available on selected loans.

The maximum loan value is £350,000.

In addition, two- and five-year fixed rate residential mortgages have been upped by 0.05 per cent.

The provider, which is the intermediary lender of The Co-operative Bank, said the hikes re-align these deals with the market.

Two- and five-year deals now start from 1.39 per cent and 2.44 per cent at 60 per cent LTV with a £1,499 fee on all.

REACTIONS

Provider view

Stuart Beattie, head of mortgages at Platform, said: “With the continued demand we are seeing for buy-to-let mortgages, we are delighted to offer brokers these new reduced rates from our Platform mortgage range.

“Supporting brokers and growing our mortgage business is a key part of our strategy, and we remain committed to offering competitive deals, providing great quality products and services to both brokers and their clients.”

Adviser view

Commenting on the five-year fixed product at 3.34 per cent with a £1,999 product fee, David Penny, director of Somerset-based Invest Southwest, said: “It is not uncommon for there to be a hefty fee with buy-to-let mortgages. With smaller mortgages, a high product fee is something we might wish to avoid, but it could be right for our larger mortgage customers. However, the rate is good.

“There has been an increase in demand for buy-to-let mortgages. From the adviser and other people I speak with, there has been plenty of interest shown by investment clients. I have not seen an increase in applications in Taunton and Somerset because there has been an absence of first-time buyer properties in these areas.”

Charges

Charges range from £0 to £1,999.

Verdict

The increase in demand for buy-to-let mortgages is well-documented. Here, the deals are competitive, and the choice of fee options is welcome.

Upping rates appears to be a relatively new trend in the mortgage market following a summer of slashed rates. TSB recently unveiled that it is to increase the rate of interest across its range of low LTV 10-year fixes. This is the second time in less than two months that Platform has announced a hike in increase rates on a selection of its fixed-rate residential mortgages – adjusting to the market, according to the lender. It will be interesting to see if other providers follow suit.

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