RBS increases LTVs
The move comes after positive broker feedback following a similar enhancement on its First Active range.
David Jones, commercial director at RBS Intermediary Partners, commented: “Having spoken to many of our intermediary partners, there was a clear desire to have the RBS house purchase fixed rate products available at up to 95 per cent LTV to match the remortgage products available from First Active. The new 95 per cent LTV limit will mean intermediaries will be able to offer these very popular products to a wider range and greater number of clients.”
The lender has also changed its fee structure, charging arrangement fees rather than booking fee, with the amount charged remaining the same.
Therefore, the client can either pay the fee up front or add the amount to the value of the mortgage, which RBS believed would offer its clients more choice in the matter.
The two-year fixed at 4.49 per cent has a £699 arrangement fee while the three-year fixed at 4.95 per cent has an arrangement fee of £499.
Tony Catt, a sole practitioner, said: “It’s excellent news and it brings them into line with the rest of the market. It shows that they seriously want to be part of the mortgage market as LTVs up to 75 per cent really limited them in the people they could deal with. This move is an indication that they want to break more into the mortgage market as currently they aren’t big players.”