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.
|Period of Loan||Rate Payable|
|Month 60 onwards||
Standard Variable Rate, Currently:
|Overall cost for comparison||3.9% APRC|
No minimum loan.
Maximum loan £1 million for any single property or £2 million aggregate lending over a maximum of 3 properties.
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 5 years any additional amount repaid above the 5% permitted will be subject to an Early Repayment Charge of 5% of the amount repaid in year 1, 4% of the amount repaid in year 2, 3% of the amount repaid in year 3, 2% of the amount repaid in year 4 & 2% of the amount repaid in year 5.
Regular overpayments are not permitted during the fixed rate period. 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 amount outstanding at the time of the rate switch in each of the first 5 years, without an early repayment charge. However, during the first 5 years any additional amount paid above the 5% permitted will be subject to an Early Repayment Charge of 5% of the amount repaid in year 1, 4% of the amount repaid in year 2, 3% of the amount repaid in year 3, 2% of the amount repaid in year 4 and 2% of the amount repaid in year 5. Following receipt of the lump sum payment, the amount that you owe, and so the interest you pay, is reduced immediately.
A mortgage of £202,199.58 payable over 18 years and 8 months initially on a fixed rate for 5 years at 2.80% and then on our current variable rate of 4.74% for the remaining 13 years and 8 months, would require 60 monthly payments of £1,160.06 and 164 monthly payments of £1,310.17.
The total amount payable would be £285,095.48 made up of the loan amount plus interest (£82,271.90) and Product Fee (£499.00), Mortgage Exit Fees (£125.00).
The overall cost for comparison is 3.9% APRC representative.