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Discount Mortgages Terms and Conditions

Full Terms and Conditions relating to our 2 Year Discounted Mortgage Product - up to 80% Loan to Value


  • Existing customers for product transfer purposes, re-arrangement, Additional Borrowing applications and existing customers moving home.
  • Available on capital and interest repayment method 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  • Product Availability: This product may be withdrawn with little or no notice.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/Remortgage 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:

  • 1.55% variable (our standard variable rate minus 3.64% for 2 years).
  • Then changing to our Standard Variable Rate (SVR) currently 5.19% variable.
  • The overall cost for comparison is 4.8% Annual Percentage Rate of Charge (APRC)*.
  • 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.
  • After 2 years the account will change to the Society’s standard variable rate, 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 discounted 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.
  • 3.64% discount off the Society’s standard variable rate (currently 5.19%) for 2 years.

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


  • Maximum loan £1,500,000 (loan size restrictions apply see below).
    Loan amount Maximum Percentage
    £400,001 to £500,000 80%
    £500,001 plus 75%
  • Maximum loan to value is 80% (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.
  • 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 is £75,000.


  • Early Repayment Charge: If the mortgage is repaid either in whole or in part, or is transferred to an alternative product, before 31 May 2023 then an early repayment charge will apply. This charge will be based on; 1% of the outstanding loan if the mortgage is repaid before 31 May 2022 and 0.5% of the outstanding loan if the mortgage is repaid before 31 May 2023. 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 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. 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 £125,000.00 on a capital and interest (repayment) basis payable over 25 years initially on a discounted variable rate of 1.55% (equal to 3.64% discount off our Standard Variable Rate) for 2 years and then on our Standard Variable Rate (SVR) of 5.19% (variable) for the remaining 23 years you would pay:

1 monthly repayment of £90.24, followed by
24 monthly repayments of £502.23, followed by
276 monthly repayments of £721.93

The total amount payable would be £211,536.44 made up of the loan amount of £125,000.00 plus interest (£86,396.44) a funds transfer fee of £20 and legal fee of £120. The overall cost for comparison is 4.6% 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, this mortgage product may be transferred to your new property (subject to terms and conditions) – please see our 'Discounted Rate Portability' at the bottom of this page for details.

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