UNIVERSAL BUILDING SOCIETY
Two Year Discount
Up to 95% of valuation subject to a maximum of £150,000,
up to 90% of valuation subject to a maximum of £200,000,
up to 85% of valuation subject to a maximum of £225,000,
up to 80% of valuation subject to a maximum of £250,000,
up to 75% of valuation subject to a maximum of £500,000
Up to 95% of valuation - up to three times principal income plus second or 2.5 times joint, up to 80% of valuation - up to 3.5 times principal income plus second or 2.75 times joint
Valuation fee paid up to £200
5% of original loan in first two years
0.35% of original loan
Tel: 0800 0288383
Universal Building Society's two-year discounted deal has a 2 per cent discount, giving a payable rate of 4.79 per cent.
Aptitude Financial Planning principal Roy Rutter believes there are discounted-rate mortgages on better terms and from names that are more familiar to the public than Universal. However, he adds: “Discount mortgages remain popular and 2 per cent off for two years is up with the best buys in the market.”
Rutter believes the timing of this product could be good as the increasing cost of mortgage regulation may see a dwindling of competitive fixed rate offerings. He says: “The maximum LTV is higher than many other lenders and the valuation fee is paid, but only up to £200. This is not much good for buyers in the expensive South East.”
Rutter also complains about the arrangement fee, which Universal calls a completion fee. Rutter regards this as high and hard to justify.
Looking at the early redemption terms Rutter says: “Although the tie-in is only for the two-year term, 5 per cent is a high redemption penalty. I would have preferred a fee to a scale, say 4 per cent in year one and 2 per cent in year two.” He also feels the valuation fee incentive and remortgaging service are half-hearted.
In conclusion, Rutter feels there will be competition from Newcastle Building Society and Alliance & Leicester.
Suitability to market: Average
Competitiveness of mortgage rate: Good
Adviser remuneration: Average