IF YOU FAIL TO KEEP UP WITH PAYMENTS ON YOUR MORTGAGE A ‘RECEIVER OF RENT’ MAY BE APPOINTED AND/OR YOUR PROPERTY MAY BE REPOSSESSED.
|Period of Loan||Rate Payable|
|Months 1- 24||
Initial Variable Rate, Currently:
The interest rate will not go below a floor rate of 1.60%
|Month 25 onwards||
Standard Variable Rate, Currently:
|Overall cost for comparison||
Interest Rates are variable. All discounts are off our Standard Variable Rate. If our Standard Variable Rate changes, your monthly repayments could go up or down.
No minimum loan.
Maximum loan £1 million for any single property or £3 million aggregate lending over a maximum of 3 properties.
Mixed Repayment/Interest only mortgages will be considered. For new borrowers the interest only element cannot exceed 75% LTV. The latter only applies to new borrowers. Existing borrowers will be allowed to switch into a new product and port their 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 Society staff must establish how they intend repaying this and where possible encourage those that are able to do so to convert all or part to a repayment basis.
During the first 2 years any additional amount repaid above the 10% permitted will be subject to an Early Repayment Charge of 1% of the amount repaid in years 1 & 2.
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 10% 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 10% permitted will be subject to an Early Repayment Charge of 1% of the amount repaid in years 1 & 2. Following receipt of a lump sum payment, the amount that you owe, and so the amount of interest you pay, is reduced immediately.
A mortgage of £208,813.00 payable over 22 years and 7 months initially on a variable discount rate for 2 years at 2.35% and then on our current standard variable rate of 4.74% for the remaining 20 years and 7 months, would require 24 monthly payments of £993.73 and 247 monthly payments of £1,234.25.
The total amount payable would be £328,834.27 made up of the loan amount plus interest (£119,896.27) and Mortgage Exit Fees (£125.00).
The overall cost for comparison is 4.4% APRC representative.