Accord Mortgages has abolished processing fees for residential mortgage applications.
Potential borrowers applying for home loans from Wednesday 5 October will no longer be charged a £130 processing fee.
Accord is currently deciding whether or not to extend this to buy-to-let applications.
David Robinson, national intermediary sales manager at Accord, said: “Taking out a mortgage can be costly, so by getting rid of this administration charge we have removed a barrier for those making initial investigations into borrowing with us.
“We know that people’s circumstances can change, and not every mortgage application comes to fruition, so we believe it’s fairer to remove this cost for borrowers. Brokers can now submit applications with the assurance that their clients won’t have to pay any product fees until the mortgage has completed.
“We hope this change will appeal to both brokers and their clients, and will help to reduce the upfront costs of getting a home loan – especially for those who opt for one of our fee-free mortgages.”