April Mortgages to launch Dutch-style mortgages with fixed rates that fall over time

The new mortgage type will launch in April and will be for aspiring first-time buyers with up to a 5% deposit.

The interest rate on Dutch-style mortgages falls as the homeowner pays off more of the loan.

So, if you have a loan-to-value (LTV) of 95%, which means the value of your mortgage is 95% of the value of your home, and you pay off enough to reduce it to 90% LTV, your mortgage will be switched automatically to one with a lower rate if it’s available.

While this is already possible with traditional mortgages, you have to remortgage for a lower rate, which can be costly and time-consuming.

Who is April Mortgages?

April Mortgages is new to the UK market and currently offers remortgages for those with at least 85% LTV in their home.

The company is part of the largest independent asset manager of Dutch residential mortgages, DMFCO, which has offered 100,000 loans via its mortgage brand Munt in the Netherlands.

While April Mortgages is authorised and regulated by the Financial Conduct Authority (FCA), you have to apply for a mortgage with them via a broker.

Unbiased can connect you with a regulated mortgage broker to help you find the best deal.

However, it’s worth checking if they offer deals from April Mortgages if you’re looking for a Dutch-style mortgage.

Fixed-rate mortgages with April Mortgages start at 4.99% and last between five and 15 years.

An application fee of £195 and valuation fees, based on the value of your property, apply, as well as legal and completion costs.

April Mortgages allow overpayments of any size. The company also allows you to move house or repay your mortgage without any ERCs as long as the money used is from your savings.

Need help with your mortgage?

Unbiased can help you quickly find a local mortgage broker who can find the most competitive mortgage for your unique circumstances.