We have mentioned the increasing popularity of five year fixed rates a lot recently, as many borrowers continue to favour longer-term fixed rates amid the ever-uncertain economic climate. This is particularly relevant in light of the shock-result of the US Presidential Election, which is expected to initially provoke further insecurity in the market.
Despite concerns over the global markets and economy, competition between lenders generally remains high, with their appetite to lend and offer affordable rates unwavering. London remains a safe-haven for investment from UK homeowners and overseas investors, and these offers show no sign of slowing down yet.
The benefit of a five year fixed rate is indisputable; providing borrowers with the security of fixed monthly payments without the cost of remortgaging for at least five years. Whereas longer-term fixed products once came with higher rates to compensate, even these have also been creeping down in price.
Lenders are continuing to meet increasing demand from borrowers for these products, making the stakes even higher for those competing to offer outstanding rates and criteria. However, this can make it harder for borrowers to determine the right product for their circumstance.
That’s where our chosen product for this week comes in: an exclusive and very competitive, high loan to value (LTV)) five year fixed rate with a unique repayment offering.
High loan to value 5 year fixed rate up to 80% loan to value using sale of property
A lender that we have an excellent relationship with is now offering a very impressive five year fixed product with a rate of just 2.39%. This is available for loans of £1million and above on properties based in Central and Greater London.
This product is especially set up for prime central London properties as it offers a full interest only facility up to 80% LTV when using the sale of property as repayment. This is an extremely accessible and beneficial product considering the majority of banks will usually only offer a maximum of 50% LTV when using the sale of property as a repayment vehicle.
As well as providing a unique sale of property offering, this is a very competitive rate in itself when compared against other repayment alternatives available on the market. With no additional hidden fees or criteria and an affordability assessment that is very much in line with that of other lenders, this is certainly a product to reap the benefits from.
This is a great opportunity for high net worth clients in need of a higher gearing, yet still wish to secure their dream central London property and take advantage of an extremely competitive rate at the same time – ensuring financial security and peace of mind, no matter what movement or activity occurs on the market.
If this product is something you are interested in, or you have any questions on similar products or the market in general, please do not hesitate to get in touch. One of our specialist brokers will be on hand anytime to answer your questions and provide expert advice for your financial needs.