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Help to Buy Small deposit, big dreams
Make it a reality with a Help to Buy Mortgage

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

Criteria:

  • New customers for the purchase of their main residential property only.
  • Maximum purchase price of £600,000 in England and £300,000 in Wales.
  • Applicant(s) to be either employed or self-employed (confirmation of income will be required).
  • Applicant(s) 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  • Product Availability: This product may be withdrawn with little or no notice.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 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.
  • Loan must be repaid using the Capital and Interest Repayment method.

Interest Rate:

  • 2.25% Fixed until 30 November 2022.
  • Then changing to our Standard Variable Rate (SVR) currently 5.19% variable.
  • The overall cost for comparison is 4.9% Annual Percentage Rate of Charge (APRC)*.
  • Completion must take place on or before 30 November 2020. Please note that if your mortgage does not complete by the 30 November 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 Standard Variable Rate, applicable at that time which will not fall below 3.00% 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.

* The actual rate available will depend upon your circumstances. Ask for a personalised illustration.

Loan:

  • Minimum loan £25,000.
  • Maximum loan £450,000 in England, £330,000 in London and £225,000 in Wales.
  • Maximum loan to value is 75% (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.
  • Minimum Property Value is £75,000.

Fees/Charges:

  • Early Repayment Charge: If the mortgage is repaid either in whole or in part, or is transferred to an alternative product, before 30 November 2022 then an early repayment charge will apply. This charge will be based on; 2% of the outstanding loan if the mortgage is repaid before 30 November 2021 and 1% of the outstanding loan if the mortgage is repaid before 30 November 2022. 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.
  • One free standard mortgage valuation for all purchase 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 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 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.
  • Help to Buy customers 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.

Cashback:

  • You will receive cash back of £400 on completion of your mortgage. Not available for product transfers or additional borrowing

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 £125,000.00 on a capital and interest (repayment) basis payable over 25 years initially on a fixed rate for 2 years fixed at 2.25% and then on our Standard Variable Rate (SVR) of 5.19% (variable) for the remaining 23 years you would pay:

1 monthly repayment of £7.68, followed by
24 monthly repayments of £544.17, followed by
276 monthly repayments of £726.22

The total amount payable would be £213,644.48 made up of the loan amount of £125,000.00 plus interest (£88,504.48) a funds transfer fee of £20 and legal fee of £120. The overall cost for comparison is 4.7% 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.

Portability:

  • This product is not portable.

 

Additional Notes for the Help to Buy Equity Loan:

  • 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 (https://www.helptobuy.gov.uk/equity-loan/equity-loans/), and for Wales refer to www.helptobuywales.co.uk/how-it-works

Mortgage IllustrationThis product page does not contain all of the details you need to choose a mortgage. Please speak to your Mortgage Adviser who will provide you with a mortgage illustration, which will detail all the features of a particular mortgage. Please make sure you read the mortgage illustration before you make a decision on your choice of mortgage product.

This product page should be read in conjunction with our Homebuyers Guide booklet and the Statement of Practice – Borrowers booklet. For other charges, which may apply, see our Tariff of Mortgage Charges.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE