The Mortgage Lender has unveiled its first fee-assisted remortgage.
It believes the move could save those that doesn’t fit standard lending criteria thousands of pounds on their mortgage costs.
The two-year fixed rates are available on loans up to 85% loan-to-value, with rates starting from 3.41%.
Pete Thomson, sales and marketing director at TML, said: “When remortgaging, the upfront costs can be a barrier for some. We’ve broken that barrier down. The question is now very simple – will my repayments be cheaper?
“Lots of homeowners have seen their situation change while they’ve been on their existing deal. Now, because they’ve become self-employed, taken on a second job, are paying school fees or maybe have some credit issues, they think they’ve got little choice but to just sit on their current lender’s expensive Standard Variable Rate.
“That doesn’t have to be the case and they could save thousands of pounds in just two years, which they could be putting to other uses.”
With no arrangement fee, free standard legal services, refunded valuation fee and no application or telegraphic transfer fees, TML said the deal could save borrowers over £2,500 in upfront fees over the initial two-year fixed period in addition to lower repayments worth thousands of pounds, compared to staying on a Standard Variable Rate (SVR).
It gave the following examples:
|The Mortgage Lender||3.41||£1,438|
|SVR %||Monthly Repayment||Saving over two years|
(Based on: 75% LTV, £250,000 loan, 20-year term)