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First time buyers A step by step guide

Full Terms and conditions relating to our Staffordshire Moorlands District Council 5 year Fixed Rate Mortgage Product - up to 95% Loan to Value

Staffordshire Moorlands District Council Criteria:

The scheme is only available to first time purchasers who meet the criteria set out by Staffordshire Moorlands District Council (SMDC) and Leek United Building Society's responsible lending policy:-

  • The purchase price must not exceed £150,000.
  • Selected post codes apply within the district (Please refer to one of our Qualified Mortgage Advisers in branch for full details).

Leek United Building Society Criteria:

  • New customers for the purchase 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) located within selected post codes within Staffordshire Moorlands 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  • Product Availability: This product may be withdrawn with little or no notice.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 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:

  • 3.74% fixed until 30 June 2025.
  • The overall cost for comparison is 4.9% Annual Percentage Rate of Charge (APRC).
  • Completion must take place on or before 30 June 2020. Please note that if your mortgage does not complete by the 30 June 2020, you will not benefit from the 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 £30,000.
  • Maximum loan £142,500.
  • Maximum loan to value 95% (including any fees added to the loan). Loan to Value is your total mortgage amount divided by the purchase price or valuation, whichever is lower.
  • Minimum property value £75,000.


  • An application fee of £199 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.
  • Early Repayment Charge: If the mortgage is repaid either in whole or in part, or is transferred to an alternative product, before 30 June 2025 then an early repayment charge will apply. This charge will be based on; 5% of the outstanding loan if the mortgage is repaid before 30th June 2021, 4% of the outstanding loan if the mortgage is repaid before 30th June 2022, 3% of the outstanding loan if the mortgage is repaid before 30th June 2023, 2% of the outstanding loan if the mortgage is repaid before 30th June 2024 and 1% of the outstanding loan if the mortgage is repaid before 30th June 2025. 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, 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).
  • 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.

Additional Borrowing

  • 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 £142,500.00 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 £14.56, followed by
60 monthly repayments of £729.66, followed by
240 monthly repayments of £859.18

The total amount payable would be £250,336.36 made up of the loan amount of £142,500.00 plus interest (£107,497.36) 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. 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 not portable. You cannot move this mortgage to another property. Whilst the Local Authority Mortgage Indemnity (or guarantee) is in place you cannot transfer to another mortgage product provided by the Society.

Local Authority Indemnity:

Leek United Building Society and Staffordshire Moorlands District Council (SMDC) 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 80% of the purchase price and therefore has arranged with SMDC 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. Staffordshire Moorlands 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 Staffordshire Moorlands 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.

This product sheet should be read in conjunction with our “Homebuyers Guide” booklet, “Fixed Rate Portability Sheet” and the “Statement of Practice – Borrowers” booklet. For other charges, which may apply, see our “Tariff of Mortgage Charges”.