The deals include a two-year fix at 4.84 per cent and a three-year fix at 5.13 per cent, both up to 90 per cent loan-to-value (LTV) and with arrangement fees of 1.5 per cent of the loan. There is also a two-year fixed rate at 5.12 per cent up to 95 per cent LTV, with an arrangement fee of £999.
There are early repayment charges of 3 per cent on the two-year fixes and 4 per cent on the three-year fixed. All products have no higher lending charges, with end dates extended to 31 March.
Matthew Wyles, group development director for Portman, said: “By increasing the arrangement fee, which can be added to the loan, we have been able to hold the pay rates down.”
Rod Murdison, proprietor of Murdison & Browning, commented: “As soon as you add an enormous arrangement fee, the rate drops. The 1.5 per cent arrangement fee on the two-year fix increases the pay rate to 5.59 per cent in real terms. A client may be better off going for the fixed fee, as the effective pay rate would be 5.32 per cent. It’s the next thing sourcing systems need to address, as the results are unbalanced by arrangement fees.”
Matthew Wyles, group development director for Portman, said: “By increasing the arrangement fee, which can be added to the loan, we have been able to hold the pay rates right down.”
