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First Time Buyer Mortgages from the friendlier face of finance

Full Terms and Conditions relating to our Help to Buy 2 Year Fixed Rate Mortgage - up to 75% Loan to Value

Available to:

  • New customers for the purchase of a new build residential property only.
  • Maximum purchase price of £600,000 in England and £300,000 in Wales.
  • 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.
  • 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  • Product Availability:  This product may be withdrawn with little or no notice.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 application form is fully completed and submitted and that any application fee is paid.
  • 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:

  • 2.89% fixed until 30 April 2021.
  • Completion must take place on or before 30 April 2019.  Please note that if your mortgage does not complete by the 30 April 2019, you will not benefit from the fixed rate period quoted.
  • At the end of the fixed rate period the rate will revert to the Society's SVR applicable at that time which will not fall below 3% at any time during the life of the mortgage.
  • 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.
  • The Society reserves the right to withdraw the fixed 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 £450,000 in England, £330,000 In London and £225,000 in Wales.
  • Maximum loan to value 75%.  Loan to value is your total mortgage amount divided by the purchase price, whichever is the lower.

Fees/Charges:

  • An application fee of £199 is payable upfront, which is non-refundable.
  • 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, before 30 Apri 2021 then an early repayment charge will apply. This will be based on; 2% of the outstanding loan if the mortgage is repaid before 30 April 2020 or 1% of the outstanding loan if the mortgage is repaid before 30 April 2021. 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.
  • Help to Buy customer wishing to take additional borrowing in the future must first seek approval from their appointed Home Buy agent.
  • Please note that Leek United will not allow any additional borrowing until the equity loan is repaid in full or the additional borrowing is to repay the Equity loan in full and has been approved via the Home Buy agents.
  • Further details are available on request.

Representative Example (based on a house purchase):

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 £169,000 on a capital and interest (repayment) basis payable over 25 years initially on a fixed rate for 2 years fixed at 2.89% and then on our Standard Variable Rate of 5.69% (variable) for the remaining 23 years you would pay::

 1 monthly repayment of £13.38, followed by
60 monthly repayments of £789.94, followed by
240 monthly repayments of £1,032.75

The total amount payable would be £304,349.94 made up of the loan amount of £169,000 plus interest (£135,010.94) with an application fee of £199, funds transfer fee of £20 and legal fee of £120.  The overall cost for comparison is 5.2% 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.  Please speak to your mortgage adviser for further details.

Portability:

  • This product is not portable.

Additional Note:

  • You will need an ‘Authority to proceed’ from your Help to Buy agent before applying for a Leek United Help to Buy mortgage.
  • The Help to Buy equity loan cannot last longer than the Leek United mortgage term.
  • The Help to Buy equity loan can be repaid in whole or in part at any time. Part repayments must be at least 10% of the property value.
  • You cannot rent out your existing home and buy a second home through Help to Buy.
  • The Help to Buy Leek United mortgage must be repaid on a capital and interest repayment basis.
  • Help to Buy customers wishing to take additional borrowing, or make any administrative changes to your mortgage in the future, must first seek approval from their appointed Home Buy agents. Please note that Leek United will not allow any additional borrowing until the equity loan is repaid in full or the additional borrowing is to repay the Equity loan in full and has been approved via the Home Buy agents.
  • The property purchased must be your only residence. Help to Buy is not available to assist buy-to-let investors or those who will own any property other than their Help to Buy property after completing their purchase.
  • For full details of the scheme in England, refer to the Help to Buy website (www.helptobuy.org.uk/equity-loan/equity-loans), and for Wales refer to www.helptobuywales.co.uk/how-it-works