News / Updates
Following extensive consultation with mortgage brokers and customers, the Society has made a number of changes to its range of mortgage products.
Please find below details of the changes effective 1st October, 2020 which include giving greater flexibility regarding how Arrangement Fees are managed, the introduction of new products aimed at doctors and dentists and widening the eligibility criteria for the Society’s Professional Mortgage Product which now includes Key Workers. Please see below for more information:
Following extensive consultation with mortgage brokers and customers, we are delighted to unveil a range of new fee assist mortgage products for our customers, where there is no arrangement fee to pay upon completion.
We are also making changes to our existing product range whereby we will allow arrangement fees to be added to the loan where the maximum product LTV limit has been reached*.
For the new fee assist products, while our customers will still need to pay an application and valuation fee (as well as any associated legal fees), removing the arrangement fee, which is typically one percent of the total value of the mortgage amount, represents a change for us in terms of our pricing of products.
For products where an arrangement fee is payable, we will allow customers to add this to the value of their mortgage, even if the maximum loan to value is exceeded, without affecting the interest rate charged*.
The new and revised products are available from October 1, 2020.
“We are constantly reviewing what we do and the products we offer to ensure we remain competitive and offer our customers the best possible solutions for their needs,” said our chief executive, Alun Williams.
“In this case, we have consulted extensively with both our network of mortgage brokers and our mortgage customers to re-evaluate our products in line with their expectations and recommendations.
“The result is a big change in the way arrangement fees are managed. This can be a big extra cost to people; these new products will allow customers to choose which option is best for them and their circumstances.
“The feedback on doing this has been very positive, against a backdrop of a bumper time for the housing market after the restrictions of COVID-19 were eased. We think these adjustments to our offering makes our products very attractive in what remains a competitive environment.”
*Except for the self-build, renovation and Buy to Let 70, Consumer Buy to let 70 and Holiday Let 70 products.
After speaking extensively with our mortgage brokers and customers, we are delighted to introduce a new mortgage product specifically designed for medical professionals – offering them enhanced terms and a better deal.
The Medical Professional Mortgage Product is designed specifically for cases where the applicant, or one of the applicants in the case of a joint mortgage, is a medical doctor, surgeon or dentist. They might be looking to purchase a property, re-mortgage from another lender, or raise capital against equity in a property.
This new product also allows our customers to borrow a higher amount against their income compared with standard mortgage products, subject to meeting affordability rules. Sole customers will be able to borrow up to 5.5 times their sole income (the standard criteria is a multiple of 4.5) while joint customers will be able to borrow up to 5.0 times their joint income (the standard criteria is a multiple of 3.5).
The new products are available to customers from October 1, 2020.
“We are constantly reviewing what we do based on feedback from customers, brokers and our wider analysis of the mortgage landscape to ensure we are competitive where relevant in the current market,” said Alun Williams, our chief executive.
“In this case, we wanted to develop a product that would reflect the current and future earnings potential of some of our clients who work in the medical profession. We are delighted to be able to roll this product out from October 1; we have already had very good feedback from our network of brokers.”
Here at Swansea Building Society, we are proud to have been able to add key workers from a number of sectors, all of whom have played a critical role in helping the UK through the COVID-19 pandemic, to the list of professions that are eligible for enhanced terms.
Our ‘Professional’ Mortgage product offers a lower interest rate to individuals in a range of professions ranging from accountants to engineers to solicitors to architects.
Now, in recognition of the critical role keyworkers from many professions played in the country’s battle with COVID-19, we have added 11 additional professions to our list of those eligible for the product.
Bank workers, delivery drivers, military personnel, pharmacy workers, mail carriers, utility workers, farmers, truckers/lorry drivers, grocery shop workers, carers and medical workers such as paramedics have all been added to the list.
The updated eligibility list will apply from October 1, 2020.
“The coronavirus pandemic brought huge challenges for the country and, like everyone else, Swansea Building Society has huge admiration for the key workers that kept the economy moving through unprecedented times,” said Alun Williams, our chief executive.
“The staff in the NHS did an incredible job but there were also many other keyworkers in different industries that worked through the pandemic. We wanted to do something that recognised their efforts and felt that adding them to our list of professions eligible for our Professional Mortgage product was the right thing to do.”