IF YOU FAIL TO KEEP UP WITH PAYMENTS ON YOUR MORTGAGE A ‘RECEIVER OF RENT’ MAY BE APPOINTED AND/OR YOUR RENTAL 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 2.04%
|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.
Interest only, Repayment or Mixed repayment / Interest only.
During the first 2 years any additional amount repaid above the 10% permitted will be subject to an Early Repayment Charge of 2% of the amount repaid in years 1 & 2.
Regular overpayments are not permitted during the life of the product. Regular overpayments are amounts collected with, and in addition to, your monthly mortgage payments. You can make capital repayments during the life of the product of up to 10% of the balance outstanding when the product was taken out without incurring an Early Repayment Charge. However, any additional amount repaid above the annual 10% permitted will be subject to an Early Repayment Charge. Following receipt of a lump sum payment, the amount of capital you owe will be re-calculated and the amount of interest you pay will be reduced immediately.
A mortgage of £270,890.70 payable over 17 years and 8 months initially on a variable discount rate for 2 years at 4.29% and then on our current standard variable rate of 6.49% for the remaining 15 years and 8 months, would require 24 monthly payments of £1,824.77 and 188 monthly payments of £2,117.28.
The total amount payable would be £441,843.12 made up of the loan amount plus interest (£170,952.42).
The overall cost for comparison is 6.1% APRC representative.