Borrowers can also request a valuation during the fixed term if they think the price of their home has risen. This will then help shave off even more percentage points. If the valuation is lower, April will still use the original valuation.
Valuations are free for properties up to £750,000 in Greater London and £500,000 elsewhere in England and Wales.
The breakout lender said it has the ability to offer fixed term products as long as 40 years, but that there isn’t much demand for that in the UK right now.
Last year, the Telegraph revealed ministers were considering the benefits of Dutch-style, long-term fixed mortgages to help more first-time buyers onto the housing ladder.
Andrew Griffith, economic secretary to the Treasury, said he was “definitely interested” in these types of products.
In the UK, mortgages are currently funded through deposits. But in the Netherlands, an alternative funding model has grown in popularity where home loans have instead been propped up by longer-term products such as pensions and life insurance policies.
April is yet to get a UK pension fund onboard, so all the mortgages it writes for British customers are backed by Dutch funds.
Mr Hague said: “We are relying on our Dutch roots for now. But we do intend to attract funding from pension funds in the UK. They like the idea of funding mortgages directly, so now it’s a case of trying to build these relationships.”
To attract brokers, who get paid more if they advise borrowers to take out shorter fixes, April is paying them an “annual service fee” from the fifth year of a product’s term.
April is not the only Dutch brainchild to launch in the UK mortgage market. Perenna, founded by Dutchman Arjan Verbeek, was granted a licence back in August 2022 to offer 30-year fixed rate mortgages.
Banks in Britain usually provide mortgages ranging from two to 10 years, with two and five-year fixes being the most popular deals.
Last year, high street lenders warned the Government against longer fixes, arguing that take-up would be small while interest rates were peaking.
In August 2023, the average five-year fixed rate was 6.37pc according to Moneyfacts. Since then, they have fallen to 5.18pc.
