2 Year Discount Mortgage Help to Buy - Wales - D172

help to buy - Wales

This product is to be used in conjunction with the Help to Buy - Wales Scheme.

Help to Buy - Wales allows eligible purchasers to buy new-build homes with assistance from the Welsh Government in the form of a shared equity loan. This scheme can be offered to both first-time buyers and existing home-owners wishing to purchase a new-build property worth up to £300,000.

This mortgage offers lower monthly payments during the first 2 years, which is particularly helpful at a time of high expenditure such as a house move. The rate of interest is variable, however it is reduced for a specified period.

During the discount period the interest rate charged will be at our Standard Variable Rate less the amount of the discount. At the end of the discount period, interest will revert to our Standard Variable Rate for the remainder of the life of the mortgage.

Also this product allows you to make lump sum and regular overpayments without an Early Repayment Charge, enabling you to reduce your mortgage loan quicker.

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 House Purchase

Period of loan Rate Payable Additional Information
Months 1-24 (2.89% discount) 2.10% Variable Rate £845 Product Fee (can be added to the loan) - One Free Standard Valuation (terms apply), £500 cashback (terms apply)
Month 25 onwards (no discount) Standard Variable Rate Currently 4.99%
The overall cost for comparison is: 4.5% APRC

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

Product Code: D172

Key Features:

Product Fee £845 (can be added to the loan)
Maximum Loan to Value % 75%
Loan Size £30,000 to £228,000
Repayment Type Repayment Only.
Early Repayment Charge None
Cashback £500 cashback on completion of your purchase.
Valuation Fees One Free Standard Valuation (On Properties up to £1 Million in Value)
Overpayments Regular overpayments will be permitted without an early repayment charge. Regular overpayments are amounts collected with, and in addition to, your monthly mortgage payments. You may make capital repayments without an early repayment charge. 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 £150

Further Information:

  • †Applicants will need to demonstrate that they have a deposit of at least 5% in the property and up to 20% under a Help to Buy Wales loan.
  • New Build Properties only.
  • Only available in Wales.
  • This product is only available to those using the Help-to-Buy Wales Scheme and only for new build homes in Wales. For more information on the Help-to-Buy Wales Scheme, visit www.helptobuywales.co.uk.
  • Mortgage interest is calculated on a daily basis.
  • Our Tariff of Mortgage Charges gives details of the charges payable in connection with mortgage applications and additional administration following completion of your loan.
  • Loans available to persons aged 18 or over and are subject to status and valuation of a suitable property, over which security will be required. All lending will be subject to appraisal of the financial standing of the applicants.

Representative example:

A mortgage of £210,687 payable over 19 years 10 months initially on a discounted variable rate for 2 years at 2.10% and then on our current variable rate of 4.99%  for the remaining 17 years 10 months would require 24 monthly payments of £1,083.11 and 214 monthly payments of £1,365.00

The total amount payable would be £319,499.64 made up of the loan amount plus interest (£107,417.64), product fee (£845), application fee (£150), legal costs (estimated £250), funds transfer fee (£25) and mortgage exit fees (£125).

The overall cost for comparison is 4.5% APRC representative.

Info documentView the Help To Buy - Wales Buyers Guide from the Welsh Government.

Links to further important information and details of how to apply can be found on the top right-hand-side of this page.

Monmouthshire House, John Frost Square, Newport, NP20 1PX
Tel: 01633 844444
Fax: 01633 844445

Monmouthshire Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register Number: 206052.


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