A new Dutch-style mortgage lender is set to release fixed-rate mortgages in which the rates will automatically reduce as borrowers repay them.
April Mortgages, authorised by the Financial Conduct Authority in October, plans to offer loans to existing homeowners remortgaging and new buyers by the end of March. The bank is a UK subsidiary of the Dutch asset manager DMFCO.
As in the Netherlands, the bank plans to fund its loans through investments from pension funds and life and insurance businesses, rather than from savers’ deposits, like UK high street banks.
