Vida Homeloans reduces residential mortgage fees

Vida Homeloans reduces residential mortgage fees

Vida Homeloans has added free valuations to its residential mortgage range and reduced assessment fees.

The lender now offers a £49 assessment fee on properties up to £500,000, down from £180, and has waived its valuation fee.

It has also introduced a one per cent fee, charged at a minimum of £495, for buy-to-let mortgages with a maximum loan size of £125,000 - replacing a previous fixed fee of £1,995.

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Louisa Sedgwick, director of sales mortgages at Vida Homeloans, said the changes are a result of feedback from intermediaries and suited to borrowers currently not well served by high street lenders.

She said: “These changes to our fee saver residential product and specialist buy-to-let range show our continuing appetite to grow our specialist mortgage lending.”

Vida Homeloans is also offering no product fees and free standard legals on remortgages across its range of fee saver products.

The lender targets the first and second charge residential and buy-to-let demographic, tailored to customers not fitted to high-street bank criteria.

Vida Homeloans recently launched its helping hand mortgage to assist parents in helping children onto the property ladder without a stamp duty surcharge, needing to feature on title deeds or jointly own the property.

David Hollingworth, associate director of communications at London & Country Mortgages, said there was no reason borrowers in the specialist market should not have access to a range of fee options and Vida's changes recognised that. 

He said: "Borrowers are increasingly aware that the interest rate, although important, is not the only thing to focus on when looking for a new deal. Fees play a big part in determining the overall value so Vida’s incentive of free valuation should be received well."