Teachers Building Society has lowered the arrangement fee on its 95 per cent and 90 per cent loan-to-value mortgages.
The previous arrangement fee of £1,999 has been lowered to £899 and the two mortgages been relaunched as three-year variable rate loans in order to meet the needs of customers who want longer-term discounted deals.
Teachers’ three-year discounted variable mortgage is discounted by 0.40 per cent from the society’s standard variable rate to 4.59 per cent for the first three years.
The mortgage then changes to the SVR, which is currently 4.99 per cent for the rest of the mortgage term.
The Teachers first-time buyer teacher mortgage has a variable rate which is discounted by 0.10 per cent from its SVR to 4.89 per cent for the first three years.
Mortgages from Teachers Building Society are available to education professionals in England and Wales as well as applicants of any occupation in Dorset, Hampshire and Wiltshire.
The society also accepts introduced mortgage business from members of the Legal & General Mortgage Club, Tenetlime and Mortgage Intelligence networks.
Jane King, a mortage adviser at Ash-Ridge Private Finance in London, said: “Teachers’ rates are not the best in the market and it does tend to have very conservative lending criteria.
“However, we are finding that fees are going up as lenders look for more comfort and being careful about whom they lend to. So by dropping its fees, Teachers is going against the grain.”