|Period of Loan||Rate Payable|
|Month 61 onwards||
Standard Variable Rate, Currently:
|Overall cost for comparison||3.9% APRC|
No Product fee
No minimum loan size
Maximum loan size £500,000
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.
During the first 5 years any additional amount repaid above the 10% 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 life of the product. Regular overpayments are amounts collected with, and in addition to, your monthly mortgage payments. You can make capital repayments during the life of the product of up to 10% of the amount borrowed / balance outstanding when the product was taken out without incurring an Early Repayment Charge. However, any additional amount repaid above the annual 10% permitted will be subject to an Early Repayment Charge. Following receipt of a lump sum payment, the amount of capital you owe will reduce (or be re-calculated) and the amount of interest you pay will be reduced immediately.
A mortgage of £155,454.40 payable over 20 years and 8 months initially on a fixed rate for 5 years at 2.85% and then on our current variable rate of 4.74% for the remaining 15 years and 8 months, would require 60 monthly payments of £830.18 and 188 monthly payments of £949.08.
The total amount payable would be £228,362.84 made up of the loan amount plus interest (£72,783.44) and Mortgage Exit Fees (£125.00).
The overall cost for comparison is 3.9% APRC representative.