Savings
Whether you’re looking for instant access, annual bonuses or tax-free savings, we have an account that will help you achieve your savings goals.
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Mortgages
Whether you’re looking to buy your first home, move somewhere bigger, or simply get a better deal, we can offer a mortgage that suits you.
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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.
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Get in touch
Telephone
01633 844 351
2.59% Fixed Holiday Let Mortgage - Max LTV 75%*
This mortgage allows you to purchase a residential property for holiday letting purposes. The maximum Loan to Value (LTV) is the amount of a mortgage loan expressed as a percentage of the purchase price or valuation, whichever is the lower. At the end of the fixed period interest will revert to our Standard Variable Rate for the remainder of the life of the mortgage.
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
Interest Rates
Period of Loan Rate Payable
Months 1-24

Initial Variable Rate, Currently:

2.59%

Month 25 onwards

Standard Variable Rate, Currently:

5.24%

Overall cost for comparison 4.6% APRC

Interest Rates are fixed.

Product Fee

£999 (can be added to the loan)

Loan Size

£50,000 to £500,000

Repayment Type

Interest Only, Repayment or Mixed Interest-Only/Repayment.

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.

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.

Further Information
  • 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.
  • *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 65% on apartments and maisonettes.
  • 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.
  • At least one party must earn at least £25,000 per annum with a maximum loan size of up to £350,000 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 loan sizes above £350,000 at least one party must earn atleast £40,000 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.
  • 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 25 (21 considered on referral).
  • 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%.
  • Minimum property value £150,000.
  • Term 5-30 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 shared ownership property
    • Split into more than one unit

Representative Example

A mortgage of £232,892 payable over 18 years and 11 months initially on a fixed rate for 2 years at 2.59% and then on our current variable rate of 5.24% for the remaining 16 years and 11 months would require 24 monthly payments of £1,298.81 and 203 monthly payments of £1,586.53.

The total amount payable would be £355,056.03 made up of the loan amount plus interest (£120,345.03), product fee, (£999), valuation fee (£420), legal costs (estimated £250), funds transfer fee (£25) and mortgage exit fees (£125).

The overall cost for comparison is 4.8% APRC representative.