The lender is to offer customers a free standard valuation across its relaunched core range of self-cert and buy-to-let products for a limited period, for both purchase and remortgage applications (except on early repayment charge (ERC) free products).
There is no cap on the offer. The fee is being completely removed, rather than offered as a refund, which means that customers will not need to pay up front and then claim back at a later date.
At the same time, UCB Home Loans is to change its ERC calculation in order to bring it into line with the rest of the market. Previously based on a specific number of months’ interest, the calculation will work on a flat percentage of the loan, mirroring the system used by other lenders. Customers redeeming their mortgage during the benefit period will be charged 5 per cent of the loan on the majority of the lender’s products, with a lower rate of 3 per cent on the self-cert trackers.
UCB Home Loans managing director, Keith Astill, said: "Free valuations are always popular with customers, and offering this incentive on both purchase and remortgage business is a unique proposition in the market at the moment, especially as we haven’t put up our pay rates on these products to offset the incentive."
He added: "UCBHL’s prime objective is to offer a combination of exceptional service and competitive pricing that brokers can easily compare with those of our main competitors. Using a percentage calculation for ERCs is now the market norm and makes our ERCs directly comparable with those of other lenders. At the same time, the standard fees paid by all applicants are generally lower than those of other lenders, and the free valuation fee makes a UCBHL mortgage extremely attractive."
UCBHL is also increasing the rate on its self-cert two-year ERC free tracker from 5.79 per cent to 6.09 per cent as part of a general review of its range.
