Perenna has launched a Standard Variable Rate (SVR) comparison calculator to highlight the impact of stressed rate affordability assessments applied on traditional short-term fixed rate products.
Made for brokers, the calculator compares Perenna against SVR products.
This followed shortly after Perenna dropped rates on its remortgage (0.38%), purchase (0.27%), and RIO (0.5%) ranges, alongside the launch of its new 10 to 15-year fixed rate mortgage term across remortgage and purchase.
The calculator allows brokers to calculate the approximate loan size that Perenna would be able to offer a client, subject to criteria, and then compares this against traditional SVR stressed mortgages.
For example, a consumer with a budget of £1,500 a month, looking for 90% loan-to-value (LTV) on a 30 year term on average UK rates would find that Perenna could lend them £44,441 more than traditional lenders.
Perenna would be able to lend £231,031, as opposed to the £186,590 from other lenders.
Colin Bell, co-founder and chief operating officer, said: “This calculator is an important next step in our ongoing efforts to educate the industry on the impact different types of mortgage products have on affordability.
“Not only do longer term fixed rate mortgages take the burden of interest rate risk away from the consumer, they also give an affordability boost which could make the difference between a one or two-bed, a leasehold or freehold, or getting onto the first rung of the housing ladder.
“It’s there to help brokers see clearly the benefits of long-term fixed rate mortgages. And the product comes with short ERCs of only five years so clients have flexibility too.”
