Afin Bank is removing the product fee on its 95% LTV five-year fixed rate mortgages for applications in May, saving borrowers £1,495.
While the incentive is available on all purchase mortgages, Afin says it could be particularly beneficial for first-time buyers looking to maximise their affordability.
The product fee offer is available on a 95% LTV five-year fix in Afin’s prime range, with a rate of 6.49%, and its professional range, with a rate of 6.34%, for loans up to £500,000.
Afin is already offering free legal fees on remortgages in May, saving borrowers £900 on standard legal fees for mortgages under £1 million, rising to an average saving of up to £1,800 for loans between £1 million and £2 million.
Afin Bank supports customers who struggle to get mortgages from mainstream lenders, such as the self-employed, contractors or people with multiple income streams, foreign nationals working in the UK on valid visas and qualified professionals.
The lender’s professional range offers enhanced loan-to-income ratios of 6.5 for anyone with a recognised professional qualification, including people from overseas on a valid working visa who can apply for a mortgage after six months residency in the UK.
Rob Lankey, national sales director for Afin, said: “It’s tough for buyers at the moment, especially with interest rates rising. By removing the product fee on our 95% LTV mortgages we’re aiming to help borrowers free up their cash a bit more, so they could potentially buy their own home with just a 5% deposit.
“A saving of £1,495 could be particularly helpful for first-time buyers balancing deposit requirements alongside other costs such as legal fees and moving expenses. By choosing a five-year fixed rate, they are also locking in their monthly repayments during a possible period of interest rate volatility.”