The West Brom building society is launching several fixed rate mortgage offers with no fees in a move to lower the cost for customers.
The West Brom has estimated that first-time buyers and homemovers could save up to £934 if they choose a five-year fixed rate mortgage of the new range, as the previous offer included £199 booking fee, a £400 completion fee and an average valuation fee of £335.
Incentives will apply for the next eight weeks, till 13 April.
West Brom’s head of products David Taylor commented:
“It is essential for borrowers to factor in the total cost of taking out a mortgage, rather than be enticed by a low rate of interest. Of course people want their repayments to be as affordable as possible, but expensive fees and extras such as valuations and legal work can neutralise the benefit of paying less per month. In some cases, borrowers can end up paying more over the duration of the fixed rate term.
“Our message is to look at the bigger picture and be sure your mortgage is offering overall value for money. Removing booking, valuation and completion fees for the coming weeks is a bold step by the West Brom and shows our firm commitment to supporting customers and their plans for home ownership. It’s a perfect time for people to talk to us and see what help might be available.”
The new offers include:
*Two-year fixed rate at 1.99 per cent, fixed until 31/05/2017 (available from Friday, 20 Feb) – for loans up to 75 per cent loan-to-value (LTV); the overall cost for comparison is 3.7 per cent annual percentage rate (APR).
*Two-year fixed rate at 2.19 per cent, fixed until 31/05/2017 (available now) – up to 80 per cent LTV; the overall cost for comparison is 3.7 per cent annual percentage rate (APR).
*Five-year fixed rate at 2.69 per cent, fixed until 31/05/2020 (available now) – up to 65 per cent LTV; the overall cost for comparison is 3.6 per cent APR (purchaser / mover) and 3.5 per cent APR (remortgage).
*Five-year fixed rate at 2.89 per cent, fixed until 31/05/2020 (available now) – up to 75 per cent LTV; the overall cost for comparison is 3.7 per cent APR (purchaser / mover) and 3.6 per cent APR (remortgage).
All offers are available to customers who are purchasing or moving home; no booking fee, no completion fee; free first standard valuation (worth up to a maximum of £525); remortgage option, which includes fees assisted legals.
These mortgages revert to the West Brom’s standard variable rate at the end of the fixed rate term, which is currently 3.99 per cent.
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