Building society the West Brom has doubled the amount of cashback for first-time buyers and cut product fees after a review of its incentives.
Buyers who opt for the lender’s five-year fixed rate mortgage of 2.99 per cent at a loan-to-value (LTV) ratio of up to 90 per cent will now receive £1,000 at the end of their term – double the previous offering.
The product, for loan sizes up to a maximum of £500,000, also offers a free first standard valuation and there are no booking or completion fees to pay.
Borrowers with a deposit at least 15 per cent qualify for a rate of 2.59 per cent fixed for five years, with a free valuation, no booking or completion fees and cashback of £500.
Meanwhile £400 completion fees have been dropped from remortgage products at both 85 per cent and 90 per cent LTV, while borrowers also benefit from free first standard valuation, fees-assisted legals and no booking fee.
Borrowers will pay 2.54 per cent (up to 85 per cent LTV) and 2.79 per cent (up to 90 per cent LTV) in interest for the five-year term, with a maximum loan size available of £500,000.
David Taylor, the West Brom’s head of products, said: “The West Brom is committed to supporting members who wish to purchase their own home by offering a broad range of mortgage products which deliver good overall value.
“We know that many of the borrowers opting for products at up to 90 per cent LTV are buying a home for the first time. Reducing the costs associated with taking out a mortgage means they can focus instead on saving for that all-important deposit.
“Those borrowers qualifying for cashback can also put the payment to good use against other essential expenses, such as stamp duty where applicable, conveyancing fees or even furnishing their new property.”
Nick Green, broker at Coventry-based Alternative Estates and Financial Services, said: “These are good rates. They are very competitive and the fact they come with no fees is a good deal for buyers.
“The £1,000 cash back is a lot higher than other lenders. The closest five-year fix with no fees is Bank of Ireland at the same rate - 2.99 per cent - but £500 cashback.”