Newbury Building Society

Here are the facts...

All mortgage products are available for properties within our normal operating area only.  We will also lend to people who have been members of the Society for two years or more where the property is located in England or Wales. 

Please note that additional notes for Affordable Housing are shown throughout in italics.

 What interest rate do you get?

This depends on how much deposit you have to put down if you are buying your home or how much equity you have in your home if you are switching your mortgage to us from another lender without moving home (known as a 'remortgage').

If you have a deposit or equity of 25% or more, then you get

An initial discounted rate of 5.8% variable for the first three years.

Then changing to our standard variable rate (SVR) currently 6.35% for the rest of the mortgage.

The overall cost for comparison is 6.4% APR.

If you have a deposit or equity of less than 25% and at least 10%, then you get

An initial discounted rate of 6.0% variable for the first three years.

Then changing to our standard variable rate (SVR) currently 6.35% for the rest of the mortgage.

The overall cost for comparison is 6.4% APR.

If you have a deposit or equity of less than 10% - The Society has temporarily suspended products in this category. 

An initial discounted rate of 6.2% variable for the first three years.

Then changing to our standard variable rate (SVR) currently 6.35% for the rest of the mortgage.

The overall cost for comparison is 6.5% APR.

For Affordable Housing mortgages your share of the property must be at least 50% of the purchase or valuation (the lower of the two).  You can borrow up to 95% of your share with this product.  The loan to value limits are calculated on the share.  The total mortgage amount must not be more than 75% of the lower of the purchase price or valuation.

Is it for you?

It is also available to you if you are an existing borrower wanting to transfer into it, subject to the payment of any early repayment charge that’s applicable.

For Affordable Housing, products are available to those purchasing or remortgaging their residential home, through the New Build, Open Market or Social Homebuy Schemes. 

You need to be accepted by a zone agent, housing association or local council for either the New Build, Open Market or Social Homebuy Scheme. The property you are looking to buy must be located in our operating area.

How much can you borrow with this product?

The minimum loan amount for this mortgage is £50,000.

The maximum loan amount for this mortgage is £500,000.

Please take a look at our Lending criteria for more details.

The loan amount must not exceed 90% of the property’s purchase price or valuation, whichever is the lower of the two amounts. 

For Affordable Housing, the loan amount must not exceed 95% of the share.

What fees will you need to pay?

We will pay for a standard mortgage valuation, providing your mortgage proceeds (completes).

There are also no higher lending charges payable. If your mortgage is more than 75% of the value of your home, we do take out an insurance policy to cover the risk of lending a higher amount but we pay for this. To see more about this insurance policy, click here for details.

A mortgage application fee

An application fee of £500 is payable for purchases or remortgages (including Title Insurance) when you apply for this mortgage, both are refundable if the loan does not complete.

If you wish to, you can add this fee to your mortgage but please note that this would increase the amount you borrow and would also increase your monthly payments.

For Affordable Housing, application fees are payable in advance and refundable if the loan does not complete.

Legal fees

Legal work is required when buying your home or for a remortgage and the cost of this legal work is payable by you. We can use your solicitors to do this work if you want us to as long as there are at least two partners in the firm and they are registered in Butterworth’s Law Directory.

For remortgages we can carry out the legal work for you using something called Title Insurance and this cost is included in your application fee. To see more about what this involves please click here.

For Affordable Housing, free legals do not apply.

Is there any charge for repaying your mortgage early?

If you repay your mortgage in full during the first three years of the mortgage (when you are receiving the discounted rate), you will need to pay an early repayment charge. The amount of the charge depends on when you repay the mortgage. If you repay the mortgage in full in year 1 of the discounted rate period the charge will be 3% of the original loan amount, 2% in year 2 and 1% in year 3.

In addition a Mortgage Exit Administration Fee applies to all borrowers who repay their mortgage in full before the end of the full term of the mortgage.

Can you make any lump sum payments or overpayments on this mortgage?

Yes, you can make lump sum payments or over-payments of any amount without charge during the mortgage term, providing the loan is not fully repaid.

How is the interest charged on your mortgage?

The interest is charged on a daily basis, which means that the interest charge is calculated daily and only on the amount outstanding on your mortgage. Of course, any repayments or overpayments you make will immediately reduce the interest charged on your mortgage (subject to cheque clearance where the payment is made by cheque).

Can you move home and take this mortgage with you?

Yes, you can. As this mortgage is what we call ‘portable’, if you move house within the early repayment charge period, you can transfer it to your new mortgage without charge. One thing to note though, if the loan amount on your new mortgage is lower, there will be a charge based on the difference between the old and new amount.

Is there anything else you need to be aware of?

You should read our handy guide Mortgages explained, which contains general information relating to mortgages in general and to borrowing with Newbury Building Society.

Are there any charges to pay once your mortgage is in place?

There are charges for one-off services you may require, for example if you need a duplicate mortgage statement or want to change the way you repay your mortgage. Please click here for details.