The mortgage lender, Platform, has just launched a new product solely for joint property buyers. They say that research has shown that those with joint mortgagees tend to ‘perform better’ than those with a mortgage in their sole name. They are therefore able to offer favourable rates to joint applicants.
The move comes amid rising unemployment and fears that single home owners would not be able to keep up with their mortgage payments if they lost their job. The two-year fixed rate deal is being offered at a rate of 3.19 per cent for joint borrowers with a 30 per cent deposit, by non-high street lender Platform. None of the lender’s other fixed rate deals for sole borrowers are available at that rate. The best rate on this deal for a single person is a higher 3.49 per cent.
It is understood that this is the first time a lender has offered preferential rates to joint borrowers. Platform only offers its home loans through mortgage brokers but other high street lenders could follow with similar deals if the deal proves to be a success. The lender defended the better rate, saying joint mortgages were less of a risk than those approved to single borrowers. However, while the mortgage is for joint applicants, both parties do not have to be working. Mortgage finance has dried up since the beginning of the credit crisis three years ago despite banks receiving billions of pounds in taxpayer support. Mortgage experts condemned the move, saying sole borrowers were not higher risk borrowers.
The deal is available to those buying a new home as well as remortgaging and comes with a £1,495 arrangement fee. Platform said it offers a two-year tracker mortgage deal at 2.79 per cent for those with a 40 per cent deposit.
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