Precise Mortgage is ditching the arrangement fees on its recently launched range of prime home buyer mortgages and opening up to a wider distributor market.
The £995 fee on the two-year fixed-rate products, launched in September and available at up to 70 per cent, is being scrapped at the same time that cashback on the remortgage option is being doubled from £500 to £1,000.
Product distribution is being opened up from 22 October to the whole of the market.
The prime range was previously exclusive to Legal and General Mortgage Club and Sesame Bankhall Group.
Precise’s managing director Alan Cleary says: “The £995 fee is going to zero. Prices are down to 2.89 per cent for two years with zero fee and a revert rate of 3.92 per cent, making it the best rate in the market at 70 per cent LTV.
“It’s gone out to whole of market. Pretty much everyone in the intermediary market has access to it.”
Precise cut rates on the prime range from 3.49 per cent to 2.89 per cent at the beginning of October, in response to rate cuts issued by the major high-street banks at around the same time.
Cleary said: “We are serious about breaking into the prime mortgage market and we hope that these products will be well received by brokers.”
London & Country head of communications David Hollingworth says: “Getting rid of the fee gives that product a different cutting edge by broadening the appeal to borrowers.
“Having a good cashback to reimburse borrowing costs will go down well with remortgage customers.
“Precise recognises it is a competitive market and is clearly driving to do more business.”