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Principality enhances product offering

Amanda Jarvis

March 9, 2006

Recent MORI statistics show that on average, Welsh borrowers are 20 per cent less likely to be motivated by mortgage rate alone compared to borrowers across the whole of the UK and they are 15 per cent more likely to look for specific product features and benefits. For example, Welsh borrowers are more than twice as likely to look for free legal fees compared to borrowers across the whole of the UK.

With this in mind, Principality has launched a number of products.

The two-year fixed-rate mortgage at 4.54 per cent (max loan-to-value of 75 per cent) or 4.64 per cent (max LTV 95 per cent) is popular with remortgagers in Wales and offers free legal fees for remortgages and free valuation.

Alternatively, the fee-saver products include a three-year discount mortgage at 4.94 per cent, giving a 1.50 per cent discount on the standard variable rate of 6.44 per cent (until 31/05/09). There are no upfront administration fees, no legal fees (for remortgage applications) and no valuation fees.

The Principality tracker mortgages have no early repayment charge and the two-year tracker has a rate of 4.59 per cent (max LTV of 95 per cent) with free legal fees for remortgages and free valuation.

Dominic White, head of marketing at Principality, said: “Welsh consumers are telling us that upfront costs such as legal fees and valuation fees can put them off remortgaging. As a Welsh building society, we have listened to our customers while devising our new range and the fee-saver products are proving very popular, with highly competitive rates and added incentives.”

Principality product details:

Two-year fixed – 4.54 per cent until 31 May 2008 (6.4 per cent APR)
– Up to 75 per cent LTV
– £499 administration fee
– Legal fees paid by Principality for remortgages – covers Principality legal fees only
– Free valuation – valuation for mortgage purposes only
– Free mortgage payment protection insurance (MPPI) for first six months
– Early repayment charge – three per cent of original balance until 31 May 2008. If partial payment is made 3 per cent of the amount paid.

Two-year fixed – 4.64 per cent until 31 May 2008 (6.4 per cent APR)
– Up to 95 per cent LTV
– £499 administration fee
– Legal fees paid by Principality for remortgages – covers Principality legal fees only
– Free valuation – valuation for mortgage purposes only
– Free MPPI for first six months
– No higher lending charge up to 90 per cent
– Early repayment charge – three per cent of original balance until 31 May 2008. If partial payment is made three per cent of the amount paid.

Fee-saver – three-year discount – flexible – 4.94 per cent (6.3 per cent APR)
– 1.50 per cent discount until 31 May 2009 then changing to SVR, currently 6.44 per cent
– Up to 95 per cent LTV
– No upfront administration fee
– Free valuation – valuation for mortgage purposes only
– Legal fees paid by Principality for remortgages – covers Principality legal fees only
– Free MPPI for first six months
– No higher lending charge up to 90 per cent
– Flexible features – overpayments and underpayments allowed
– Early repayment charge – three per cent of original balance until 31 May 2009, only if loan is repaid in full.

Two-year tracker – flexible – 4.59 per cent (6.4 per cent APR)
– Bank of England repo rate plus 0.09 per cent until 31 May 2008 then changing to SVR, currently 6.44 per cent
– Up to 95 per cent LTV
– £499 administration fee
– Free valuation – valuation for mortgage purposes only
– Legal fees paid by Principality for remortgages – covers Principality legal fees only
– Free MPPI for first six months
– No higher lending charge up to 90 per cent
– Flexible features – overpayments and underpayments allowed
– No early repayment charges.


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