The new Light Touch discount mortgage offers an initial variable rate of 6.29% Gross for three years and 6.79% (SVR) thereafter. The overall cost for comparison is 7.2% APR. It is available for both home purchase and re-mortgage purposes and is aimed at helping people who have an adverse credit history, or have experienced financial difficulty in the past.
It has an up front application fee of £200 (non-refundable). A completion fee of £345 also applies to the Light Touch Discount mortgage, which can be added to the loan. The minimum loan is £25,000, with a maximum limit of £250,000.
The mortgage has a 4% early repayment charge if part or fully redeemed in the first three years. It comes with competitive features including annual capital repayments of up to 10%, free standard valuation up to £200, cash back of £250 paid on completion, minimum valuation of £100,000 and 80% loan to value.
The Light Touch Discount mortgage is available through Universal Building Society’s branch network and Universal Direct, the Society’s postal and telephone service.
Kevin Robinson, chief executive of Universal Building Society, said: “We understand how important it is to deliver appropriate mortgages for all situations and we feel the Light Touch Discount mortgage is yet another good quality choice, especially for people who have had to face financial difficulties in the past.”