Non-conforming lender Platform Home Loans is overhauling its fixed-rate
range to attract cautious borrowers fearful of interest rate rises.
Platform is introducing two new loans and cutting the rate on two existing
products after seeing demand for fixed-rate loans rocket by 13 per cent
last month following market speculation of a rise in rates.
The new loans at available at 6.74 per cent and 6.99 per cent to maximum
loan to value of 65 per cent and 75 per cent respectively. The rates of the
existing mortgages have been cut from 7.3 per cent to 7.24 per cent and
from 7.55 per cent to 7.49 per cent. Maxi-mum LTV is 95 per cent.
Available for purchase and remortgage, the loans are fixed until December
2002. Following the fixed period, borrowers revert to a margin over Libor
dependent on the borrower's credit history.
Redemption penalties are 6 per cent of the loan during the first two years
and 5 per cent in the third year. For the remainder of the mortgage,
borrowers must give one month's notice in lieu or pay 1 per cent of the
All the loans are open to borrowers with CCJs, mortgage arrears and
bankruptcies or who have failed credit sco-res with mainstream lenders.
Sales and marketing director Guy Batchelor says: “Many industry
commentators are advising that we have reached the bottom of the current
interest rate cycle.”