Platform, the broker-only brand of The Co-operative Bank has introduced a 0.79% residential mortgage, and has cut rates by up to 32 basis points on other selected home loans.
Highlights include:
A two-year fixed-rate loan at 0.79% at 60% LTV, with a £1,499 fee and £250 cashback available.
A two-year fixed-rate offer at 1.97% at 90% LTV, with a £999 fee and £250 cashback available.
A two-year fixed-rate deal at 1.61% at 85% LTV, with a £999 fee and £250 cashback available.
A five-year fixed-rate mortgage at 2.64% at 85% LTV, with a £0 fee and £1000 cashback available.
And a five-year fixed-rate loan at 2.61% at 90% LTV, with a £999 fee and £250 cashback available.
Private Finance associate director Chris Sykes says: “The Coop/Platform [its intermediary side] has just launched a two-year fixed rate product at an astonishingly low 0.79%.
“We have been surprised at the speed of decline of the rates on offer at present and this is a significant fall from the previous best rate available of 0.84%.
“This is surprising given the recent inflation data to emerge and comment that the Bank of England may have to raise rates to curb inflation if it continues to grow.
“Lenders however are currently in a rate war to get the headline-grabbing rates, and while they are of course not available to the majority of borrowers, only those with low LTV’s [at 60% or less], good loan-to-income ratios and unblemished credit records, this is a significant rate cut.
“Banks and lenders have a lot of cheap money at present and as the market slows are actively competing to lend it. We suspect we could even see rates drop further in the coming weeks and a lender coming in at 0.75% is highly likely soon.”
However, others are not sure how long these low rates will last.
Shaw Financial Services founder Lewis Shaw says: “This is yet another sign that lenders are going toe-to-toe in a bid to entice top quality, low-risk customers onto their books.
“By dangling these kinds of rates in front of borrowers they’re sure to succeed, too.
“If you’re in the market and have at least 40% equity or deposit, you’ll need to strike while the iron is blisteringly hot, because deals like this don’t come around every day of the week.
“In fact, they’ve never come around ever.
“Who knows whether a lower rate will emerge, but be under no illusions that this kind of rate competition won’t last for long.”
The Co-operative Bank director of mortgage distribution Fred Sharp adds: “We continue to review our product range to ensure that we’re offering the most competitive rates and best value mortgage options for our broker partners who are still working tirelessly to support the demand from homebuyers and those looking to make the most of this low mortgage rate environment.
“We continue to make changes across our product offering to ensure we have great options available for a range of buyer profiles with cashback of up to £1,000 available on select mortgages.”