The move has brought many of the features usually associated with the remortgage market, such as free legals and cashback offers, to the purchase market, with an emphasis on the fact that Spring is traditionally a busy time of the year for both areas of the industry.
Ian Bates, head of marketing at BoI, said: “We recognise that Spring is an important time to be pro-active with our products. We’ve tried to place the focus on special features as we recognise that knocking off fees is not just good for those customers who are remortgaging.”
The product range introduced by BoI include a two-year discount at 4.59 per cent up to 95 per cent loan-to-value (LTV), with the option to overpay by 10 per cent per year. There is also a 2 per cent early repayment charge (ERC) for the two years and an arrangement fee of £499.
Options available on some products in BoI’s standard range include £250 cashback, free valuation up to £500,000, and free arrangement fees.
Also, on its first-time buyer range, 1st start, there is no higher lending charge and the 10 per cent overpay option is also available. The two-year discount products are priced at 5.19 per cent up to 95 per cent LTV and 5.49 per cent up to 100 per cent LTV.
Michael Brill, director at Baronworth Investment Services, said: “The two-year discount, when taking everything into account, is a bit of a ‘swings-and-roundabouts’ proposition. You can either pay the money upfront or get a lower rate elsewhere and end up paying much the same. However, some of the fixed rate products, for example, the two-year fixed at 4.89 per cent, are not that competitive when compared to the likes of Portman BS, Halifax and the Chelsea.”
