Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home.
|Period of Loan||Rate Payable|
|Month 37 onwards||
Standard Variable Rate, Currently:
|Overall cost for comparison||4.5% APRC|
No Product Fee
£40,000 to £1,000,000
Mixed Repayment/ Interest only mortgages will be considered. For new borrowers the interest only element cannot exceed 50% LTV. Existing Society borrowers will be allowed to transfer their existing interest only loan if they move house but any additional borrowing must be on a repayment basis. All borrowers will be required to provide evidence of how they intend to repay interest only loans.
During the first 3 years any additional amount paid above the 10% permitted will be subject to an Early Repayment Charge of 3% of the amount repaid in year 1, 2% of the amount repaid in year 2 and 2% of the amount repaid in year 3. Following receipt of the lump sum payment, the amount that you owe, and so the interest you pay, is reduced immediately.
Regular overpayments are not permitted during the first 3 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 3 years without an early repayment charge However, during the first 3 years any additional amount repaid above the 10% permitted will be subject to an Early Repayment Charge of 3% of the amount repaid in year 1, 2% of the amount repaid in year 2 and 2% of the amount repaid in year 3. 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 £189,925 payable over 20 years and 4 months initially on a fixed rate for 3 years at 2.40% and then on our current variable rate of 5.24% for the remaining 17 years and 4 months would require 36 monthly payments of £984.46 and 208 monthly payments of £1,226.37.
The total amount payable would be £290,650.52 made up of the loan amount plus interest (£100,600.52) and mortgage exit fees (£125).
The overall cost for comparison is 4.5% APRC representative.