Platform, the intermediary only lender that is part of The Co-Op Bank, has launched the lowest ever 2-year fixed rate in UK history at 0.79%. We want your views. 2-3 sentences MAX.
11 responses from the Newspage community
"You’ve never had it so good, to quote a former Prime Minister. Borrowers with large amounts of equity are having a field day. But it’s important to remember that to get the headline low rate of 0.79%, a borrower would have to pay a fee of £1,499. This means it’s only worthwhile if you’re borrowing enough to make the fee worthwhile, otherwise you’d be better off on their 1.19% rate with no fee to arrange. Many borrowers fall foul of this mistake."
"Mortgage rates just keep on tumbling with record low following record low as lenders take advantage of ultra-low funding costs to fight for market share. With much publicised, significant tax hikes on the horizon, it's hard to see the Bank of England acting to increase interest rates any time soon."
"We're in a market that keeps giving good news. Platform have (for now) claimed top spot, but it won't stop here. We expect that new rates will launch next week to match and then top this. With the UK's largest lender charging its clients a standard rate of 3.59%, the gap has never been bigger or the call to action louder. It's time to remortgage."
"We are surprised at the speed of the decline in headline mortgage rates. The Platform rate at 0.79% is a market dazzler. If you are fortunate enough to be at the right end of the market, namely 60% LTV and a good credit profile, then this will certainly appeal. Plummeting mortgage rates are great for consumers but with headline inflation figures increasing, there may be further pressure on the Bank of England to increase the base rate."
"One word: wow. How low can mortgage interest rates actually go? Will the other big lenders respond with an even lower rate? Regardless of the answers, the devil is always in the detail, not the sexy headline rate. What's the set-up fee, do I need to pay for a valuation, or is it paid for by the lender? If you're remortgaging, is the lender covering the legal costs or do you? The fees you pay can have a huge impact on whether a rate like this is suitable for you, in your situation." A professional mortgage broker will be able to guide you through all of these pitfalls and ensure you end up on the lowest cost deal for you - which may not be simply the one with the lowest interest rate.
It may seem bonkers but relationship managers have been telling us on their visits for a while that they felt there was room for rates to drop a bit more. There doesn't ever seem to have been a better time to be a mortgage borrower and a price war has one winner - the client! It's also never been more important to use a broker. A member of the public may spend hours researching which lender is offering the best deal that day but guess what? a fortnight later, someone else has beaten it and the whole process needs to start again.
"Just when we thought rates could not get any lower Platform have brought out this fantastic deal. It is unlikely to be available for long, so make sure you apply quickly. With a fee of £1,499 it is likely to be more suitable for larger rather than smaller mortgages."
"If you have a good income and a decent credit score, it really is the best time to take a mortgage with such unbelievably cheap rates and improving acceptance criteria. With at least 12 lenders offering sub-1% rates, there is a lot of choice and amazingly deals will get even better over the coming weeks as the lender fight it out to attract borrowers."
This astonishing rate war between banks continues to defy belief. Whilst sub 1% interest rates were predicted by some optimists this year, to be able to quote an interest rate of 0.79% to a client is something no one ever could have anticipated. Whilst I thought the original sub 1% deals launched by HSBC and Nationwide were a PR stunt, as often products above 1% with lower set up costs worked our more favorable, this new product by Platform is almost certain to take the market by storm! The £1,499 set up fee remains at the higher end of the market which means this product is not for everyone, and as always working out the total cost over the product term is more important than bragging rights to your friends by having the lowest interest rate!
"The cost of borrowing is at an all-time low and it is impossible for it to go much lower as the profit margins are already so fine for the lenders. There's no doubt we will look back in disbelief so my advice would be to take full advantage of what's on offer at the moment, before the inevitable rate rises come."
With many lenders now offering sub 1% rates, there has never been a better time to get a mortgage. Whenever you think rates couldn't get any lower, another lender comes out with another headline rate. I wouldn't be surprised if rates reduced by another 0.1% in the next few months. There is still a lot of uncertainty in the economy so we are unlikely to see any base rate increases any time soon so hopefully these rates are here for the long term.