Full Terms and Conditions relating to our 5 Year Fixed Rate Mortgage Product - up to 90% Loan to Value
- New customers for 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.
- 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- Product Availability: This product may be withdrawn with little or no notice.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.
- 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.
- 2.65% fixed until 31 July 2024.
- Completion must take place on or before 31 July 2019. Please note that if your mortgage does not complete by the 31 July 2019, you will not benefit from the full 5 year fixed rate period quoted.
- 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.
- 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.
- 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.
- Minimum loan £25,000.
- Maximum loan £1,500,000 (loan size restrictions apply see below).
- Maximum loan to value 90% (excluding any fees added to the loan). Loan to Value is your total mortgage amount divided by the purchase price or valuation, whichever is the lower.
Loan amount Maximum Percentage
Up to £400,000 90%
£400,001 to £500,000 80%
£500,001 plus 75%
- Maximum loan to value for capital raising (for anything other than home improvements, purchase or transfer of equity) is 75% (excluding any fees added to the loan).
- Minimum property value of £75,000.
- 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.
- Early Repayment Charge: If the mortgage is repaid either in whole or in part, or is transferred to an alternative product, before 31 July 2024 then an early repayment charge will apply. This charge will be based on; 5% of the outstanding loan if the mortgage is repaid before 31 July 2020, 4% of the outstanding loan if the mortgage is repaid before 31 July 2021, 3% of the outstanding loan if the mortgage is repaid before 31 July 2022, 2% of the outstanding loan if the mortgage is repaid before 31 July 2023 and 1% of the outstanding loan if the mortgage is repaid before 31 July 2024. 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.
- Free standard mortgage valuation for all purchase, re-mortgage or additional borrowing applications. If a valuation is required in connection with a product transfer then a valuation fee will be payable (per scale)
- A Higher Lending Charge will be applicable for any mortgages where the loan to value is above 80%, this will be paid by the Society.
- A Mortgage Exit Fee is payable at the prevailing rate on full repayment (redemption) of your mortgage.
- If you qualify, additional funds may be made available using the Society’s Additional Borrowing facility.
An up-front additional borrowing fee of £200 (non-refundable), is payable in respect of any additional borrowing.
Further details are available on request.
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 5 years fixed at 2.65% and then on our Standard Variable Rate (SVR) of 5.69% (variable) for the remaining 20 years you would pay:
1 monthly repayment of £12.02, followed by
60 monthly repayments of £753.41, followed by
240 monthly repayments of £977.42
The total amount payable would be £280,932.42 made up of the loan amount of £165,500 plus interest (£114,297.42) with an application fee of £100, product fee of £895, a funds transfer fee of £20 and legal fee of £120. The overall cost for comparison is 4.5% 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.
- This product is portable. If you move home, the 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).