Previously, SLB either provided lower rates on its residential products which came with no assistance with fees option or higher rates and assistance with fees, including legal and valuation costs.
The lender has now ditched the lower rates in favour of one overall rate where the customer can then choose an assistance with fees option.
However, whereas before SLB would simply provide cashbacks and refunds, the lender is now adding these to the loan amount.
With its assistance with fees, the customer will be reimbursed the full standard valuation fee including the administration fee for house purchases and remortgages. The cost of the valuation is then added to the customer’s loan amount upon completion.
For legal costs, the customer will be reimbursed with £250 upon completion. The £250 is then added to the customer’s loan amount. And with remortgage cases, if the customer uses their own third-party solicitor they will be reimbursed with £250 upon completion which is then also added to the customer’s loan amount.
If the customer chooses to use SLB’s panel solicitor no reimbursement will take place; however £250 will be added to the customer’s loan amount upon completion for this service.
James Cotton, mortgage specialist at London & Country, said: “For customers that are used to having free deals that are ‘true’ free deals, this could cause some confusion.
“The client will still have to find the funds upfront even if they are refunded and now they’re added to the loan. It seems it’s easier for SLB as it has now effectively halved its amount of products by getting rid of the lower rates but it’s not particularly beneficial for the customer.”
Ashley Ramsey, spokesperson for SLB, said: “The client can choose to have assistance with fees or drawdown additional funds and pay it back over a term that suits them. We believe the simplification of our product range will benefit both intermediaries and customers.”
