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UCB reviews fees across BTL and self-cert products

Ramesh Sharma

April 29, 2006

UCB will no longer charge a £75 up-front fee to reserve a mortgage product as a result of feedback from intermediaries. But the lender admitted the accompanying rise in application fees is partly to fund the subsequent shortfall.

Arrangement fees will increase from £330 to £495 on its self-certification products and its BTL range will increase from £495 to £595.

Keith Astill, managing director at UCB Home Loans, commented: “The removal of the reservation fee comes as a direct result of intermediary feedback and should help to speed up mortgage application processing times, while also partly offsetting the increase to our arrangement fees.

“Our arrangement fees have always been extremely competitive and, while the increases re-align us with the rest of the market, we are maintaining our competitive position, remaining better or equal to our major competitors in the market.”

It is the first time the lender has increased its fees on its BTL range since it entered the market, and the first rise for two years on the self-certification side.

Julie Bayley, director of Keswick I.F.A Ltd, said she believed the move would meet with mixed reactions from the market. She said: “To have a booking fee up-front on the mortgage application is not attractive to the client, as they have to pay the IFA as well and they don’t like having to pay out too much. However, the application fee is usually paid at the end and can be added onto the mortgage loan, which is better. Also, the mortgage sometimes doesn’t complete so you still have to pay without settling the case.

“The new fees sound about average but there are lots of offers out there and I am always looking to get the best overall mortgage package for my client.”


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