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Mortgages From the Friendlier Face of Finance

Full terms and conditions relating to our 2-year Discount - up to 75% Loan to Value Mortgage Product

Available to:

  • New customers for the purchase or remortgage of their main residential property only.
  • Applicants to be either employed or self-employed (confirmation of income will be required).
  • Applicants must be at least 18 years of age and be UK residents.
  • Applicants must have a credible repayment strategy in place that meets Leek United's Interest Only Policy.  Applicants must be aware that the mortgage payment covers interest only and at the end of the mortgage term the applicatant will be required to repay the original loan amount.
  • This product is designed as an Interest Only product, however the Society will allow part of the mortgage on a capital and interest repayment method.  This product cannot be taken out solely for a capital and interest method of repayment.
  • Houses and flats (subject to lending policy criteria, please ask for further details) within England (including Isle of Wight) and Wales are an accepted type of security.  For a list of unacceptable property types please speak to your mortgage adviser.
  • Product Availability:  This product may be withdrawn with little or no notice.
    To ensure funds are reserved it is essential that a Residential Mortgage Loan application form is fully completed and submitted and that any booking fee is paid.
  • Purchase/Re-mortgage will not be acceptable unless the owner/vendor has been registered with the Land Registry for at least six months.
  • Property Insurance:  Prior to completion, the Society will need to be satisfied that the insurance cover meets its minimum requirements.  Full details of minimum requirements are available on request.

Interest Rate:

  • 3.75% discount off the Society's standard variable rate (currently 5.69%) for 2 years.
  • As interest is calculated on a daily basis, any overpayments you make will immediately reduce the amount you owe and also the amount of interest you pay.
  • After 2 years the account will change to the Society's standard variable rate, applicable at that time, which will not fall below 3% at any time during the life of the mortgage.
  • The Society reserves the right to withdraw the discounted rate if you cease to occupy the property as your main residence.  The Society's standard variable rate, applicable at that time, would then apply.

Loan:

  • Minimum loan £25,000.
  • Maximum loan £1,500,000.
  • Maximum loan to value 75% (excluding any fees added to the loan).  Loan to value ratio is your total mortgage amount divided by the purchase price or valuation, whichever is the lower.
  • Minimum property value £75,000.

Fees/Charges:

  • An application fee of £100 is payable upfront, which is non-refundable, for Product Transfers only this can be added to the mortgage loan if required. You must positively elect to add the fee to the mortgage loan. Interest will be charged, at the applicable rate, on all fees added to the loan.

  • A product fee of £895 is payable.  This can either be deducted or added to the loan, if required. You must positively elect to add the fee to the mortgage loan.  Interest will be charged, at the applicable rate, on fees added to the loan.

  • Free standard mortgage valuation for all purchase, remortgage or additional borrowing applications. If a valuation is required in connection with a product transfer then a valuation fee will be payable (per scale).

  • Early Repayment Charge: If the mortgage is repaid either in whole or in part, or is transferred to an alternative product within the first two years then an early repayment charge will apply.  This will be based on; 2% of the outstanding loan if the mortgage is repaid within one year after the mortgage completes or 1% of the outstanding loan if the mortgage is repaid between one to two years after the mortgage completes.  Capital repayments, which are not subject to the above early repayment charge, can be made of up to 10% of the original loan amount (original transfer amount if variation) in any 12 month period from the date of completion.
  • A Mortgage Exit Fee is payable at the prevailing rate on full repayment (redemption) of your mortgage.

Additional borrowing:

  • If you qualify, additional funds may be made available under the Society's Additional Borrowing facility.
  • An upfront additional borrowing fee of £200 (non-refundable), is payable in respect of any additional borrowing.
  • Further details are available on request.

Representative Example

The Annual Percentage Rate of Interest (APR) varies with the circumstances of each mortgage.  Here is a representative example of a loan secured on your main residential property:  A mortgage of £160,000 on a capital and interest (repayment) basis payable over 25 years initially on a discounted variable rate of 1.94% (equal to 3.75% discount off our Standard Variable Rate) for 2 years and then on our Standard Variable Rate (SVR) of 5.69% (variable) for the remaining 23 years you would pay:

 1 monthly repayment of £119.06, followed by
24 monthly repayments of £672.45, followed by
276 monthly repayments of £970.28

The total amount payable would be £285,190.14 made up of the loan amount of £160,000 plus interest (£124,055.14) with an application fee of £100, product fee of £895, funds transfer fee of £20 and legal fee of £120.  The overall cost for comparison is 5.1% APR representative.

Please note: the example above is for a residential property purchase only and assumes a payment date of 1st of the month. If you choose to pay your mortgage later in the month this will affect payments and could result in a higher APR.  For product transfers, re-arrangement and additional borrowing applications, certain fees do not apply.  Please speak to your mortgage adviser for further details.

Portability:

  • This product is portable.  If you move home, this mortgage product may be transferred to your new property (subject to terms and conditions).  A portability fee is payable at the time of porting the mortgage at the prevailing rate.