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||4.4% APRC|
£40,000 to £1,000,000
Mixed Repayment/Interest only mortgages will be allowed but the interest only element cannot exceed 50% 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.
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 amount outstanding at the time of the remortgage in each of the first 3 years, without an early repayment charge.
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.
A mortgage of £183,506 payable over 19 years and 1 month initially on a fixed rate for 3 years at 2.10% and then on our current variable rate of 5.24% for the remaining 16 years and 1 month would require 36 monthly payments of £973.29 and 193 monthly payments of £1,223.14.
The total amount payable would be £272,228.46 made up of the loan amount plus interest (£87,598.46), product fee (£999) and mortgage exit fees (£125).
The overall cost for comparison is 4.4% APRC representative.