2 Year Discount Holiday Let Rate Switch Mortgage For Existing Borrowers Only (up to 70% LTV*) - D227

This mortgage allows you to rate switch a residential property for holiday letting.

At the end of the discount period interest will revert to our Standard Variable Rate for the remainder of the life of the mortgage.

Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home.

Interest Rates:

For Rate Switch

Period of loan Rate Payable Additional Information
Months 1-24 (2.09% discount) Variable Rate Currently 2.90% No Product Fee
Month 25 onwards (no discount) Standard Variable Rate Currently 4.99%
The overall cost for comparison is: 4.6% APRC

Interest rates are variable. All discounts are off our standard variable rate currently 4.99%.

Product Code: D227

Key Features:

Maximum Loan to Value % The maximum loan to value is 70% across Wales and England (including Isle of Wight), subject to the property being located in an area commensurate with holiday letting.
Loan Size £30,000 to £500,000
Repayment Type Mixed Repayment/Interest only mortgages will be considered but the interest only element cannot exceed 50% LTV. The latter only applies to new borrowers. Existing borrowers will be allowed to transfer their existing interest only loan if they move house. If they wish to borrow more than their current interest only element this must be on a repayment basis. Where borrowers wish to continue with an interest only loan they will be required to advise the Society how they intend repaying this.
Early Repayment Charge During the first 2 years any additional amount repaid above the 5% permitted will be subject to an Early Repayment Charge of 3% of the amount repaid. Following receipt of a lump sum payment, the amount that you owe, and so the amount of interest you pay, is reduced immediately.
Overpayments • Regular overpayments are not permitted during the first 2 years from completion. Regular overpayments are amounts collected with, and in addition to, your monthly mortgage payments. •You may make capital repayments of up to 5% of the original sum borrowed in each of the first 2 years without an early repayment charge. •However, during the first 2 years any additional amount repaid above the 5% permitted will be subject to an Early Repayment Charge of 3% of the amount repaid. Following receipt of a lump sum payment, the amount that you owe, and so the amount of interest you pay, is reduced immediately.
Application Fee None

Further Information:

  • This mortgage is available to existing borrowers
  • Please note that our holiday let mortgages are available to existing home owners who would like to purchase a property which is used for holiday letting and is situated in Wales and England (including Isle of Wight), subject to the property being located in an area commensurate with holiday letting.
  • Rental income must be a least 45% more than the mortgage interest repayments (based on the initial rate payable plus 2% or 5.5%, whichever is greater).
  • Must be a property owner-occupier.
  • These terms may be transferred to any new loan up to the amount of this loan, provided it is used for Holiday Let purposes,  completes at the same time as redemption of this loan and you still meet the Society’s lending criteria at that time. If the new loan is for less than this loan or you do not transfer these terms, an early repayment charge calculated at 3% is payable on the difference in the amount of this loan and the amount transferred. All loans must be secured on land in Wales or England. The loan to value must be no greater than 70%.

Representative example:

A mortgage of £237,277 payable over 18 years and 11 months initially on a discounted variable rate for 2 years at 2.90% and then on our current variable rate of 4.99% for the remaining 16 years and 11 months would require 24 monthly payments of £1,359.30 and 203 monthly payments of £1,591.42.

The total amount payable would be £355,806.46 made up of the loan amount plus interest (£118,404.46) and mortgage exit fees (£125).

The overall cost for comparison is 4.6% APRC representative.

 
 


Privacy & Cookies

We use cookies on this website to help make your experience of this website better. In compliance with changes to EU cookie legislation, and to control and remove cookies, please view our Privacy & Cookie policy. Please note, by continuing on this site you are agreeing for cookies to be placed on your computer.

I accept

This notice should only appear the first time you visit the site.