Dudley Building Society has lifted its geographical lending restrictions as it looks to increase its levels of mortgage lending, offering a range of products which provide borrowers with plenty of food for thought.
Particularly eye-catching is the Dudley’s new 2 Year Discounted Rate deal at 2.29 per cent, a discount of 2.70 per cent off the Society’s Standard Variable Rate. The overall cost for comparison is 4.8 per cent APR. Maximum Loan to Value is 75 per cent and an Arrangement Fee of £995 is payable. The discounted rate is available for home purchase and remortgage – with the added attraction of Free Legal Fees and Free Valuation for borrowers who want to remortgage.
Dudley Building Society Chief Executive Jeremy Wood explained the reasons for Dudley removing lending restrictions and the thinking behind its new Discounted Rate mortgage:
“Up until relatively recently, we were a little concerned that we did not want to be flooded out and deal with large volumes. But the market has changed significantly over the past few months and availability of finance is much better, so we thought instead of making our lending restrictive let’s make it available to all comers.
“We have introduced a competitive Discounted Rate as this is what the market is asking for. Indications are that interest rates will remain static, so will borrowers benefit from paying the premium attached to a Fixed Rate? We feel that a competitive discounted rate offers borrowers real choice and our 2 year Discounted Rate will provide them with a cost-effective option for their mortgage. Of course fixing will have its advantages for some and we are also launching a new 3 year Fixed Rate mortgage.”
The Dudley’ new 3 year Fixed Rate is 4.39 per cent (5 per cent APR) and is available for up to 90 per cent Loan to Value (Remortgage maximum 80 per cent LTV).
Mr Wood commented: “In lifting our lending restrictions we must maintain a structure of distribution and as we enjoy strong working relationships with London & Country, Legal & General Mortgage Club and Connells, it makes sense to take our new products to market with the help of their expertise.”
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