Swansea Building Society unveils new range of mortgage products

Following extensive consultation with mortgage brokers and customers, Swansea Building Society has unveiled a range of new fee assist mortgage products where there is no arrangement fee to pay upon completion.

Furthermore, the Society is also making changes to its existing product range whereby it will allow arrangement fees to be added to the loan where the maximum product LTV limit has been reached*.

For the new fee assist products, while customers will still need to pay an application and valuation fee (as well as any associated legal fees), removing the arrangement fee, typically one percent of the total value of the mortgage amount, represents a change for the Society in terms of its pricing of products.

For products where an arrangement fee is payable, the Society will allow customers to add this to the value of their mortgage, even if the maximum loan to value is exceeded, without affecting the interest rate charged*.

The new and revised products will be available to customers from October 1, 2020.

Alun Williams, chief executive of Swansea Building Society, said:

“We are constantly reviewing what we do and the products we offer to ensure we remain competitive and offer our customers the best possible solutions for their needs.

“In this case, we have consulted extensively with both our network of mortgage brokers and our mortgage customers to re-evaluate our products in line with their expectations and recommendations.

“The result is a big change in the way arrangement fees are managed. This can be a big extra cost to people; these new products will allow customers to choose which option is best for them and their circumstances.

“The feedback on doing this has been very positive, against a backdrop of a bumper time for the housing market after the restrictions of COVID-19 were eased. We think these adjustments to our offering makes our products very attractive in what remains a competitive environment.”

*Except for its self build, renovation and Buy to Let 70, Consumer Buy to let 70 and Holiday Let 70 products.

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