The new rates reflect the recent Bank of England interest rate rise and TMB's need to reduce demand for its mortgages in order to restore its service levels.
The product changes include:
Procuration fees: have been simplified and now stand at 0.35 per cent across the range (for all products completed after 1 June).
No maximum age: TMB will now consider mortgages where the term continues beyond normal retirement date, but will need details of gross annual income during retirement.
Additional Mortgage Security (MIG) simplified: The AMS charge will now cut in at 75% LTV (increased from 70% on self certification). AMS charged at 7.5% across all relevant products.
Completion fees: have been increased from £299 to £399 across most of the range. On Ten To Let the completion fee is 1% above 75% LTV and 0.75% up to 75% LTV. On Credit Repair mortgages the completion fee is 0.5%.
On Ten To Let the acceptable rental cover has been reduced from 130% to 125%.
The range of Acceptable Properties has been increased. Flats in blocks over 4 floors; flats above commercial premises; bedsits and studio flats; back to back terraces; High Alumina Cement; 100% timber construction; steel framed; concrete construction; Wimpey No-fines; properties of non standard construction or lacking standard amenities and properties in predominantly local authority housing areas will all now be considered subject to valuer's comments and recommendations.
Commenting on the changes, Bill Dudgeon, managing director, TMB said: "When we withdrew our products last week, we announced that we would be re-pricing to reduce demand - so that we can continue to provide brokers with the service levels for which TMB is known. The response has been quite staggering with application levels shooting through the roof. Inevitably this has had an impact on service levels. We are keeping brokers advised with regular service updates by fax. These new rates incorporate that re-pricing as well as an increase as a result of last week's Bank of England Base Rate change.
"We've also taken this opportunity to simplify and improve our products in a few areas, in response to feedback from brokers."
