The product, with a current rate of 5.09 per cent, will be available up to 85 per cent loan-to-value and has early repayment charges (ERC) of 3 per cent of the original loan within the term of the deal. There are no ERCs after the first three years.
The product has an arrangement fee of £495 and there are free standard valuations for both purchase and remortgage applications. The mortgage has been offered for a limited period only, though no specific end date has been given.
Keith Astill, managing director of UCB Home Loans, said: “This product offers a highly competitive, value for money deal. With an extremely attractive rate and the added benefit of a free standard valuation, it’s one of the best packages currently available.”
Scott Richford, product marketing manager for Mortgage Talk, commented: “This is a very competitive deal and will be one of the best in the three-year market place. While BM Solutions has a better rate, it also carries an arrangement fee of 1 per cent of the loan. This is an attractive deal and may be slightly better overall because of the lower arrangement fee. Some clients don’t want to pay a high arrangement fee out of principle.”
UCB Home Loans has also increased the rates on its self-cert and buy-to-let (BTL) two and three-year flexible fixed rate mortgage products.
The lender said this was a result of increases in the cost of funding. The rates have changed to: self-cert two-year flexible fixed rate at 5.69 per cent, self-cert three-year flexible fixed rate at 5.64 per cent, BTL two-year flexible fixed rate at 5.69 per cent, and BTL three-year flexible fixed rate at 5.64 per cent.
