The move is part of a wider relaunch of the specialist mortgage lender’s range, which will see the valuation fee removed completely from the transaction, rather than refunded to the client later on.
UCB claims it will save clients between £230 and £730, as they will not have to outlay another cost at the start of the mortgage process, although the fee remains on products with no early repayment charges (ERCs).
Keith Astill, managing director at UCB Home Loans, said: “Free valuations are always popular with customers, and offering this incentive on both purchase and remortgage business is a unique proposition in the market at the moment, especially as we haven’t put up our pay rates on these products to offset the cost of providing the incentive.”
UCB is also changing its ERC calculation so it will now be worked out as a percentage of the loan, rather than a specific number of month’s interest. Most of the range will have an ERC of 5 per cent, while the majority of its self-certification trackers will have a 3 per cent charge.
Astill added: “Our prime objective is to offer a combination of exceptional service and competitive pricing that mortgage intermediaries can easily compare with those of our main market
competitors.”
Simon Chalk, mortgage planner at Mortgage Portfolio Services, commented: “5 per cent for five years is very steep for an ERC so it’s a shame it hasn’t followed Nationwide Building Society in having stepped ERCs. However, at least you know where you stand with a percentage. Free valuations will make people look at its products but you pay for it at the end with the high ERC.”
