Early Repayment Charge: If the mortgage is repaid either in whole or in part, or is transferred to an alternative product, before 30 April 2021 then an early repayment charge will apply. This charge is 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.
Representative Example (based on a house purchase):
The Annual Percentage Rate of Charge (APRC) varies with the circumstances of each mortgage. Here is a representative example of a loan secured on your main residential property: A mortgage of £165,500 on a capital and interest (repayment) basis payable over 25 years initially on a fixed rate for 2 years fixed at 2.24% and then on our Standard Variable Rate (SVR) of 5.69% (variable) for the remaining 23 years you would pay:
1 monthly repayment of £10.16, followed by
60 monthly repayments of £719.68, followed by
240 monthly repayments of £1,006.15
The total amount payable would be £295,119.88 made up of the loan amount of £165,500 plus interest (£129,479.88) a funds transfer fee of £20 and legal fee of £120. The overall cost for comparison is 5.1% APRC 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 APRC. For product transfers, re-arrangement and additional borrowing applications, certain fees do not apply. Please speak to your mortgage adviser for further details.