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 61 onwards||
Standard Variable Rate, Currently:
|Overall cost for comparison||3.4% APRC|
No Product Fee
No Minimum Loan Size
Maximum Loan Size £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 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.
During the first 5 years any additional amount paid 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 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 £149,585.92 payable over 16 years and 6 months initially on a fixed rate for 5 years at 2.15% and then on our current variable rate of 4.74% for the remaining 11 years and 6 months, would require 60 monthly payments of £898.06 and 138 monthly payments of £1,032.83.
The total amount payable would be £196,539.14 made up of the loan amount plus interest (£46,828.22) and Mortgage Exit Fees (£125.00).
The overall cost for comparison is 3.4% APRC representative.