West Brom Removes Fees to Deliver Better Value Mortgages

Borrowers can save on booking, valuation and completion fees until 13 April.

Building society the West Brom is driving down the cost of borrowing for homeowners by dropping booking, valuation and completion fees from selected fixed rate mortgages.

The new range, which launched this week, also includes fees assisted legal work for customers who are remortgaging.  Incentives apply for an eight week period until 13 April across a number of two and five year fixed rate mortgages and could save customers up to £934*.

Products are available at loan to value (LTV) ratios of up to 80% either directly from the lender over the telephone or through its network of 37 branches in the West Midlands, Shropshire and mid-Wales.  The West Brom is the UK’s seventh largest building society.

Range highlights

Two year fixed rates start at 1.99% (up to 75% LTV) for new purchasers, home movers and remortgage customers, with no booking, valuation or completion fees payable.  Those who are remortgaging also qualify for fees assisted legals.  Customers can apply to borrow up to £1m.

The same incentives apply for those seeking a longer term fix over five years.  Borrowers with a larger deposit or more equity in their current home (up to 65% LTV) can access a rate of 2.69%.  The five year fixed rate at 75% LTV is 2.89%.

Delivering customer value

The West Brom’s head of products David Taylor says the new mortgage range is designed to deliver true value for mortgage customers.

He said: “It is essential for borrowers to factor in the total cost of taking out a mortgage, rather than be enticed by a low rate of interest.  Of course people want their repayments to be as affordable as possible, but expensive fees and extras such as valuations and legal work can neutralise the benefit of paying less per month.  In some cases, borrowers can end up paying more over the duration of the fixed rate term. 

“Our message is to look at the bigger picture and be sure your mortgage is offering overall value for money.

“Removing booking, valuation and completion fees for the coming weeks is a bold step by the West Brom and shows our firm commitment to supporting customers and their plans for home ownership.  It’s a perfect time for people to talk to us and see what help might be available.”

Product information

Mortgages available in the West Brom’s new range include:

Two year fixed rate at 1.99%, fixed until 31/05/2017

For loans up to 75% LTV; available to customers who are purchasing or moving home; no booking or completion fees are payable, plus borrowers receive a free first standard valuation (worth up to a maximum of £525); remortgage option available, with remortgage customers also receiving fees assisted legals in addition to the above incentives; the overall cost for comparison is 3.7% APR.

Two year fixed rate at 2.19%, fixed until 31/05/2017

Up to 80% LTV; available to customers who are remortgaging; no booking fee, no completion fee; includes a free first standard valuation (worth up to a maximum of £525) and fees assisted legals; the overall cost for comparison is 3.7% APR.

Five year fixed rate at 2.69%, fixed until 31/05/2020

Up to 65% LTV; available to customers who are purchasing or moving home; no booking fee, no completion fee; free first standard valuation (worth up to a maximum of £525); remortgage option, which includes fees assisted legals; the overall cost for comparison is 3.6% APR (purchaser / mover) and 3.5% APR (remortgage).

Five year fixed rate at 2.89%, fixed until 31/05/2020

Up to 75% LTV; available to customers who are purchasing or moving home; no booking fee, no completion fee; free first standard valuation (worth up to a maximum of £525); remortgage option, which includes fees assisted legals; the overall cost for comparison is 3.7% APR (purchaser / mover) and 3.6% APR (remortgage).

These mortgages revert to the West Brom’s standard variable rate at the end of the fixed rate term, which is currently 3.99%.

*on a five year fixed rate mortgage for new purchasers or home movers.  Previous product included a £199 booking fee, a £400 completion fee and an average valuation fee of £335. 

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