Type: Fixed-rate self-cert mortgage
Fixed term: Until March 1, 2008
Fixed rate: 4.95%
Minimum loan: 25,001
Maximum loan: Up to 85% of valuation subject to a maximum of 500,000, up to 75% of valuation subject to a maximum of 1m
Income multiples: Up to 3.5 times principal income plus second or there times joint
Arrangement fee: 0.75% of original loan
Redemption fee: 6% of amount repaid until March 1, 2008
Introducers fee: 0.50% of original loan subject to a 250 minimum and 5,000 maximum
Tel: 0845 070 1999
Platforms Two Year Fixed Special Self Cert Mortgage offers a rate of 4.95 per cent fixed until March 1, 2008.
London & Country mortgage specialist James Cotton notes there has been a lot of competition in the self-cert market this year, with rates continuing to drop. This new special two-year fix from Platform offers a competitive rate of 4.95 per cent on a self-cert basis. The deal is available up to 85 per cent loan to valuation with no higher lending charge and there are no overhanging early repayment charges.
Assessing the fees Cotton says: The arrangement fee is 0.75 per cent of the loan which may be seen as a negative point, but as always, it depends on the individual case. For example, Platform also has a higher rate of 5.25 per cent, with a 495 fee, but this would cost more over the two years in most cases.
However, he feels the fee on the deal under the microscope is big and there will always be borrowers that are put off by it, even if the deal works out best overall. He also feels the early redemption charge is hefty at 6 per cent, while the deal offers little flexibility during the fixed period.
Considering which lenders will compete Cotton says: I think the big competition will come from GMAC, which has a 2-year fix at 4.95 per up to 85 per cent LTV. The rate is the same as Platforms, however its fixed fee of 545 and incentives, including 350 cashback, make this a superior product. BM solutions has a two-year fix at 4.69 per cent with a 1.5 per cent fee or 5.15 per cent with a 599 fee. The Mortgage Works has a 2-year fix at 4.49 per cent, again with a 1.5 per cent fee.
In conclusion Cotton says: Arrangement fees that are a percentage of the loan are becoming more and more popular. With these comes a greater need for brokers to do their sums when comparing deals.
Suitability to market: Good
Competitiveness of mortgage rate: Good
Adviser remuneration: Average