About Us
Established in Newport in 1869 to help local people build homes, we now help people across Wales and England buy properties and save for their future.
< !--Created with SVG-edit - https://svg-edit.googlecode.com/ --> Find out more
Get in touch
01633 844 351

6.45% Discount Mortgage - Max LTV 75%

This mortgage product offers a variable interest rate that is discounted below our Standard Variable Rate for the first 2 years. At the end of the discount period, the interest rate will revert to our Standard Variable Rate.

If you fail to keep up with payments on your mortgage a 'receiver of rent' may be appointed and/or your rental property may be repossessed.

Period of Loan
Rate Payable
Months 1 - 24
Initial Variable Rate, Currently:
6.45% (2.04% Discount)
The interest rate will not go below a floor rate of 3.50%
Month 25 Onwards
Standard Variable Rate, Currently: 8.49%
Overall Cost For Comparison
8.2% APRC

Interest Rates are variable. All discounts are off our Standard Variable Rate. If our Standard Variable Rate changes, your monthly repayments could go up or down.



75% LTV

No minimum loan size.

Maximum loan size £1,000,000.

Interest Only, Repayment or Mixed Interest-Only/Repayment.

During the first 2 years an early repayment charge of 2% of the amount repaid will be incurred. After this period no early repayment charges apply.

Regular overpayments are not permitted during the first 2 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 5% of the original loan amount in each of the first 2 years without an early repayment charge. However, during the first 2 years any additional amount repaid above the 5% permitted will be subject to an Early Repayment Charge of 2% of the amount repaid in year 1 & 2% of the amount repaid in year 2. Following receipt of a lump sum payment, the amount that you owe, and so the amount of interest you pay, is reduced immediately.


  • Please note that our current House in Multiple Occupation (HMO) products are ONLY available in our lending area of England and Wales.
  • This mortgage is available to existing HMO (House in Multiple Occupation).
  • Rental income must be a least 45% more than the mortgage interest repayments (based on the initial rate payable plus 2% or 5.5%, whichever is greater). This stress test does not apply to CBTL as rent is not considered as income.
  • These terms may be transferred to any new loan up to the amount of this loan, provided it is used for HMO purposes, completes at the same time as redemption of this loan and you still meet the Society’s lending criteria at that time. If the new loan is for less than this loan or you do not transfer these terms, an early repayment charge calculated at 2% is payable on the difference in the amount of this loan and the amount transferred. All loans must be secured on land within our lending area of England and Wales.
  • For single named applications, the applicant’s income from either employment or self employment must be at least £25,000 per year. In the case of a joint application, the income of the main applicant (i.e. the highest earner) must be at least £25,000 per year. The applicant (or one of the applicants in the case of a joint application) must be an existing home owner at the time of the application. 
  • Our Tariff of Mortgage Charges gives details of the charges payable in connection with mortgage applications and additional administration following completion of your loan.

Applications will not be considered in respect of:

  • Flats above shops or other commercial properties
  • Right to Buy’ council homes
  • Properties sold at auctions
  • Multiple or short-term lets – for instance to students or holiday lets
  • Limited company borrowers
  • Properties let to family members
Representative example:

A mortgage of £106,913.57 payable over 16 years and 9 months initially on a variable discount rate for 2 years at 6.45% and then on our current standard variable rate of 8.49% for the remaining 14 years and 9 months, would require 24 monthly payments of £871.29 and 177 monthly payments of £985.83.

The total amount payable would be £195,402.87 made up of the loan amount plus interest (£88,489.30).

The overall cost for comparison is 8.2% APRC representative.