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Prime deal from UCB

UCB Home Loans

Prime Three Year Fixed Rate

Type: Fixed-rate mortgage

Fixed term: Three years

Fixed rate: 6.29%

Minimum loan: £25,001

Maximum loan: Up to 85% of valuation subject to a maximum of £500,000, up to 75% of valuation subject to a maximum of £750,000, up to 65% of valuation subject to a maximum of £1m

Income multiples: Up to four times principal income plus second or 3.25 times joint

Conditions: One free standard valuation

Flexible features: Overpayments, underpayments and payment holidays, lump sum withdrawals, interest calculated daily

Arrangement fee: £695

Redemption fee: 5% of the amount repaid in the first three years

Introducer’s fee: Refer to lender

Tel: Tel: 0845 940 1400

UCB’s new prime self-cert range comprises fixed and tracker rates up to a maximum of 85 per cent loan to value. This deal offers a three-year fixed rate of 6.29 per cent.

In London & Country mortgage specialist James Cotton’s view, the arrangement fee is a very reasonable £695 and a free standard valuation is offered. “Early redemption charges apply during the fixed-rate period, but there are some flexible features. Overpayments of up to £500 per month are allowed without penalty and there is the ability to borrow back, make underpayments and take payment holidays subject to sufficient overpayments,” he says.

Looking at the weaker features of the product Cotton says: “Self-employed applicants are required to have been in their current business for a minimum of 12 months. Employed applicants must have been in their current job for at least six months. This requirement, although still typical for the self-cert market, can be quite restrictive as the people who often most need self-cert are those who have recently become self-employed.”

He suggests Kensington’s three-year fix at 6.24 per cent up to 85 per cent LTV, with a fee of £899, as the main competitor for this deal. “ It has similar flexible features, but one important difference is that it has no minimum employment or trading period,” says Cotton.

He also mentions that lenders such as Bank of Scotland, The Mortgage Works and TMB are currently offering lower self-cert fixed rates, although the fees are higher so loan size will be a decisive factor.


Suitability to market: Average
Competitiveness of rate: Good
Flexibility: Average
Adviser remuneration: Good

Overall 7/10


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