Buyers can buy a house with a mortgage for as low as 5 lots First time at least a month agoLenders are finally offering cheaper deals.
The platform, which is a cooperative bank, will launch on Monday a fixed-rate five-year mortgage at 4.84pc. Brokers see this as a significant turning point for the housing industry.
This deal is for new borrowers and replaces a remortgage. It is the first offer at less than 5 percent since Liz Truss, who was prime minister, resigned in the wake the mini-budget.
Mark Harris, of mortgage broker SPF Private Clients, said: “The fixed rate mortgage has fallen over the past few weeks, and if this continues, we expect five-year fixes below 4% by early 2023.”
Aaron Strutt, of Trinity Financial Brokers, said: “If someone like Platform and Co-operative Bank can do it, other lenders can do it. I think this is probably the beginning – unless something else unfortunate happens.”
The 4.84pc rate for the platform is for buyers with a minimum loan size of £400,000 and a deposit of 40 lots and comes with a product fee of £1,999. Under the same terms, buyers with 25pcs or 30pcs deposit will get 4.89 percent.
A buyer who takes out a £400,000 home loan at 4.84 per cent will pay £1,613 a month in interest – a saving of £423 compared to if he took out a five-year repair at an average rate of 6.11 per cent.
The platform will also launch five-year repairs at 4.94 pieces for buyers with a deposit of 25 pieces and 30 pieces, for £1,499, and priced at 4.99 pieces for £999.
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