North East Derbyshire District Council Criteria:
The scheme is only available to first time purchasers who meet the criteria set out by North East Derbyshire District Council and Leek United Building Society's responsible lending policy:-
Leek United Building Society Criteria:
No additional borrowing is available on this scheme for 5 years from completion of your Mortgage. Additional borrowing is available after 5 years from completion of your Mortgage (subject to status and valuation).
Please speak to a Qualified Mortgage Adviser for full terms and conditions.
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 £175,000 on a capital and interest (repayment) basis payable over 25 years initially on a fixed rate for 5 years fixed at 3.74% and then on our Standard Variable Rate (SVR) of 5.69% (variable) for the remaining 20 years you would pay:
1 monthly repayment of £17.93, followed by
60 monthly repayments of £896.08, followed by
240 monthly repayments of £1,055.19
The total amount payable would be £307,367.33 made up of the loan amount of £175,000 plus interest (£132,028.33) with an application fee of £199, a funds transfer fee of £20 and legal fee of £120. The overall cost for comparison is 4.9% 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. Please speak to your Mortgage Adviser for further details.
Local Authority Indemnity:
Leek United Building Society and North East Derbyshire District Council are working together to assist First Time Buyers in the area to get onto the property ladder.
Leek United is normally only prepared to lend up to 75% of the purchase price and therefore has arranged with North East Derbyshire District Council additional security in the form of an insurance indemnity (guarantee). The purchase by the Society of this indemnity allows it to provide loans of up to 95%.
This indemnity insurance is in effect a type of insurance cover which the Society takes out for its protection in case, at some future stage, you fall significantly behind with your mortgage payments and we have to repossess your property and sell it. If the property is sold for less than the amount of your outstanding mortgage, we are able to claim under this policy to recover part or all of our loss.
When the Society purchases indemnity insurance, this does not affect your liability and promise to repay, in full, all monies owed to the Society, even if a claim is made by the Society under the policy. North East Derbyshire District Council also has the right to recover, from you, any monies paid to the Society under the indemnity insurance. The Society may seek to recover the money claimed from the North East Derbyshire District Council at the same time as recovering the balance of its own loss not covered by indemnity insurance.
The Society may claim against the indemnity insurance for up to five years from the date of mortgage completion. If mortgage arrears of three months or more are outstanding at any time during the final six months of the first five years, the indemnity insurance will be extended by a further two years.
The indemnity insurance cannot be transferred to another property.