Mortgages  

Platform extends range to 90% LTVs for brokers

Platform has launched a range of two-year fixed-rate remortgage deals for borrowers with a 10 per cent deposit while reducing rates on a number of pre-existing deals.

Two-year fixes at 90 per cent loan-to-value (LTV) start from 2.29 per cent with a £1,499 fee and 2.49 per cent with a £999 fee.

The fee-free option is priced at 2.94 per cent.

At 60 per cent LTV, two-year fixes are now available at a discounted rate of 1.49 per cent, with a £1,499 arrangement fee.

Three and five-year fixes come with a rate of 1.89 per cent and 2.34 per cent with a £1,499 and £999 arrangement fee respectively.

The fixed rate on a tracker has also been reduced to 1.44 per cent at the same LTV level, with a £999 arrangement fee.

In addition, Platform has also lowered rates across its two, three and five-year buy-to-let (BTL) products at 60 per cent LTV, with a wide range of deposit and fee options.

Highlights of the range include five-year fixes, which are available from 3.04 per cent, three-year fixes from 2.49 per cent, and two-year fixes – priced at 1.99 per cent.

Meanwhile, two-year trackers start from 1.74 per cent.

A £1,999 fee is applicable to each deal.

All mainstream deals come with a free standard valuation for remortgagers and purchasers, plus free legals for remortgagers on both mainstream and BTL. Cashback amounts of £250 or £500 are available on selected products.

Provider view

Stuart Beattie, head of mortgages at Platform, said: “We are delighted to be able to extend our product range and offer brokers 90 per cent deals for remortgages. Supporting brokers and growing our mortgage business is a key part of our strategy.

“In addition, the significant changes to the buy-to-let range allow us to remain competitive and ensure brokers are able to offer a variety of deals for a wide range of purchasers, as well as for those looking to remortgage.”

Adviser view

Commenting on the two-year fixed at 2.29 per cent at 90 per cent LTV, Phil Anderson, director of Aberdeen-based Phil Anderson Financial Services, said: “It is a great deal. There are few loans available that offer a better rate. It is amazing to think how low rates have come.

“Having the fee-free option is great for borrowers. The rule of thumb generally is to opt for the product fee but lower interest rate option for larger loans and the fee-free option for smaller loans – albeit at a higher rate of interest.

“We are doing more remortgage deals than new purchases at the moment. It is not surprising, because people often tend to think of their finances and debt consolidation around this time of year.”

He added: “The reduction made on the buy-to-let range is hardly surprising. It seems like Platform aims to entice people to take out their loans ahead of the changes to BTL stamp duty and the Mortgage Credit Directive (MCD).”

Charges

Ranges from fee-free to £1,999

Verdict

This year promises to be a groundbreaking one for the mortgage marketplace. The hike in buy-to-let stamp duties and the MCD are set to introduce new challenges to a market which has served as a battleground for lenders looking to entice new customers – contributing to the low-rate mortgage deals we see here.