|Period of Loan||Rate Payable|
Initial Fixed Rate, Currently:
|Month 61 onwards||
Standard Variable Rate, Currently:
|Overall cost for comparison||4.0% APRC|
Interest Rates are fixed.
£999 (can be added to the loan)
£30,000 to £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 first 5 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 original sum borrowed in each of the first 5 years without an early repayment charge.
A mortgage of £172,803 payable over 25 years and 5 months initially on a fixed rate for 5 years at 2.06% and then on our current variable rate of 4.99% for the remaining 20 years and 5 months would require 60 monthly payments of £728.25 and 245 monthly payments of £948.36
The total amount payable would be £277,880.20 made up of the loan amount plus interest (£103,240.20) product fee (£999), valuation fee (£288), application fee (£150), legal costs (estimated £250), funds transfer fee (£25) and mortgage exit fees (£125).
The overall cost for comparison is 4.0% APRC representative.