TMA Mortgage Club has launched a fixed rate product through Furness Building Society.
The two-year fixed rate at 1.49 per cent is available exclusively to TMA Mortgage Club (TMA) members and appointed representatives of the First Complete and Pink networks, on loans of up to 80 per cent loan-to-value (LTV).
The product is available for both purchase and remortgages, with customers receiving a £250 cashback upon completion.
Remortgage customers will also get free standard valuation and free standard legal fees.
Alternatively, if customers wish to use their own legal representative, Furness will make a £150 contribution towards costs instead.
There is a product fee of £999 and a maximum loan of £800,000.
The product is available across England, Scotland and Wales.
There is an early repayment charge: 2 per cent in the first year and 1 per cent in the second year.
However, a maximum of 10 per cent overpayment is allowed in each 12-month anniversary period within the first two years.
In Scotland there is a maximum LTV of 75 per cent.
TMA has a membership of over 3,000 advisers and offers a profit share scheme.
Rob McCoy, senior product and business manager at TMA, said he expected the product to be popular with its members, particularly for remortgage customers.
He added the “flexible approach” that the Furness has to underwriting makes them a popular choice for many intermediaries because of the continuing support they have shown for this part of the market.
Provider view:
Euan Ballantyne, head of products at Furness Building Society, said: “We are absolutely thrilled to strengthen our relationship with TMA Mortgage Club with the launch of this exclusive new product. While this product is available to standard cases, our flexible approach to underwriting means we are also able to accommodate advisers who have more complex cases.”
Adviser view:
Alan Lakey, director at Highclere Financial Services, said: “The Furness offering is quite competitive although mortgage brokers will note that there are more competitive offerings available, primarily from Platform and Accord Mortgages.
“On 80 per cent remortgages, Platform offers a 1.34 per cent rate and Accord 1.45 per cent. Like the Furness, both provide free legals and valuation as well as £250 cashback.
“For 80 per cent purchases both Platform and Accord offer the same market-leading rates with Accord providing £500 cashback. Of course, it’s not just the rate that determines selection of a lender and Furness may prove to be more flexible than many competing lenders.”
Charges:
There is a product fee of £999.
Verdict:
It is good to see a competitive product being launched into the market, but there are other competitive products out there. However, depending on how flexible the products are, this could be a factor that makes the Furness offering stand out from the crowd.
