Afin Bank has unveiled a new range of five-year fixed mortgage products, alongside cuts to selected existing rates, in a move aimed at broadening choice for both UK borrowers and foreign nationals.
The digital bank confirmed its new owner occupier five-year fixed products start at 5.89% up to 90% loan-to-value (LTV), while buy-to-let borrowers can access rates from 5.69% up to 75% LTV. All fixed rate products allow overpayments of up to 10% a year without penalty.
PROFESSIONALS RANGE
Afin has also reduced its two-year fixed rates for qualified professionals by as much as 75 basis points, bringing entry rates down to 5.59%. A five-year fixed has also been added to this range, with pricing from 6.14%. Borrowers in this category can access up to 6.5 times income and borrow up to 90% LTV.
PREMIER AND HIGH NET WORTH
On the Premier and High Net Worth range, which caters for asset-rich but potentially income-light clients, rates have been reduced by up to 50 basis points. The two-year now starts at 5.99% and the five-year at 6.29%.
The bank targets this range at individuals with significant wealth tied up in pensions, investments, property or alternative assets such as fine art and classic cars, who may not meet standard affordability criteria.
All two- and five-year fixed products carry a £1,495 fee, except buy-to-let, which has a 2.5% fee. Fees can be added to the loan. Early repayment charges are set at 2% and 1% on two-year fixes, and 5% falling to 1% over five years for five-year fixes.
James Briggs, intermediary sales director at Afin Bank, said: “Brokers are seeing more and more clients who don’t meet the criteria of mainstream lenders, whether that’s due to how they earn, how their wealth is structured, or how much they may earn now rather than their future earning potential.
“Our latest changes are designed to support such borrowers. The new five-year fixed rates offer greater long-term certainty, while the updated Professionals and Premier ranges cater for clients with strong future earnings or complex asset positions.
“Brokers need lenders who will take a considered view and that’s exactly the role we aim to play.”
