Insurance & Planning
We offer Funeral Plans and Home Insurance through our partners
< !--Created with SVG-edit - https://svg-edit.googlecode.com/ --> Find out more
About Us
Established in Newport in 1869 to help local people build homes, we now help people across Wales and England buy properties and save for their future.
< !--Created with SVG-edit - https://svg-edit.googlecode.com/ --> Find out more
Get in touch
Telephone
01633 844 351
2.74% Discount Holiday Let Remortgage - Max LTV 75%
This mortgage product offers a variable interest rate that is discounted below our Standard Variable Rate for the first 2 years. At the end of the discount period interest will revert to our Standard Variable Rate.
Your property may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your property.
Interest Rates
Period of Loan Rate Payable
Months 1-24

Initial Variable Rate, Currently:

2.74%

(2.50% discount)

Month 25 onwards

Standard Variable Rate, Currently:

5.24%

Overall cost for comparison 4.8% APRC

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.

Product Fee

No Product Fee

Loan Size

£40,000 to £1,000,000

Repayment Type

Mixed Repayment/Interest only mortgages will be considered but the interest only element cannot exceed 50% LTV. This only applies to new borrowers, with existing borrowers being allowed to transfer their existing interest only loan if they move house. Any additional borrowing must be on a repayment basis.

Early Repayment Charge (ERC)

During the first 2 years an early repayment charge of 3% of the amount repaid will be incurred. After this period no early repayment charges apply.

Cashback

£250***

Valuation Fees

One Free Standard Valuation (On Properties up to £1 Million in Value)

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 loan amount 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 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.

Further Information
  • Please note that our holiday let mortgages are available to existing home owners who would like to remortgage 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.
  • *The maximum Loan to Value is the amount of a mortgage loan expressed as a percentage of the purchase price or valuation, whichever is the lower.
  • **LTV is limited to 75% on apartments and maisonettes.
  • ***£250 cashback will be provided to the home owner upon completion in the form of a cheque or BACS transfer.
  • 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).
  • Holiday Letting Agent letter to be provided confirming weekly rent in low, medium and high season. Average taken of these three and multiplied by 30 to give a yearly figure.
  • For single named applications, the applicant’s income from either employment or self employment must be at least £25,000 per year. In the case of a joint application, the income of the main applicant (i.e. the highest earner) must be at least £25,000 per year and income to be derived from a source other than rent. If the term takes the mortgage beyond retirement, we will not need evidence of pension income and income to be derived from a source other than rent. If the term takes the mortgage beyond retirement, we will not need evidence of pension income.
  • For joint applications both applicants must be a property owner – occupier.
  • No more than 3 holiday let properties with the Society. Unlimited Holiday Let/Buy-to-Let with other lenders.
  • Private individuals only (No Limited Company lending).
  • Minimum age 21
  • Maximum age at end of term - 85 based on the oldest applicant for a joint application.
  • 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 75%.
  • Term 5- 40 Years.
  • Assured shorthold tenancies are NOT to be created.
  • Occupation will be on the basis of a licence i.e. occupants will have no rights
  • Our Tariff of Mortgage Charges gives details of the charges payable in connection with mortgage applications and additional administration following completion of your loan.

Property is unacceptable if it is:

  • Non-standard construction
  • Has restrictive usage covenants e.g. holiday let covenant
  • Situated on a holiday park
  • A new build property.
  • A shared ownership property

Representative Example

A mortgage of £201,107 payable over 17 years and 8 months initially on a discounted variable rate for 2 years at 2.74% and then on our current variable rate of 5.24% for the remaining 15 years 8 months would require 24 monthly payments of £1,197.73 and 188 monthly payments of £1,428.31.

The total amount payable would be £297,642.80 made up of the loan amount plus interest (£96,160.80), legals fees (estimated £250) and mortgage exit fees (£125).

The overall cost for comparison is 4.8% APRC representative.