Key Features
- Mortgage type
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- With a discounted rate mortgage, the lender's standard variable rate (SVR) is discounted for a specific period of time. The interest rate will vary as the lender's standard variable mortgage rate moves up and down but the amount of discount will remain the same.
- Interest rates
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- 6.50% variable. Our SVR with a 0.50% discount for 3 years, changing to our SVR for the remainder of the mortgage.
- Maximum loan to value
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- 75 %
- Fees
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- Application Fee: Existing borrower product transfer £0
- Mortgage Exit Administration Fee (MEAF): £100
- Valuation fee applies
- Features
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- Overpayments allowed
- Loan size
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- £10,000 (min) - £500,000 (max)
- The loan must not exceed 75% of the property's purchase price or valuation (the lower of the two).
- Early repayment charge (ERC)
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- The ERC is 2% of the balance outstanding on the date an existing mortgage is transferred to this product.
- During the ERC period you are permitted to make overpayments up to 10% of the balance outstanding on the date an existing mortgage is transferred to this product per year. If overpayments exceed 10% in a year during the ERC period, you will have to pay the relevant ERC percentage rate on the amount of overpayment exceeding the permitted level.
- The full ERC is payable on the balance outstanding on the date an existing mortgage is transferred to this product if you repay your mortgage in full during the ERC period. The ERC will also be levied on previously permitted overpayments.
- For this product the ERC period is until 29 November 2026.
- The Early Repayment Charge (ERC) period applies from the date of completion.
- Eligibility
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- Product available for existing borrowers to transfer their existing mortgage into, subject to payment of ERCs that apply on their current mortgage.
- Minimum property value of £150,000
Representative example
A mortgage of £88,150 payable over 20 years initially on our standard variable rate, currently 7.00% with a discount of 0.50% for 36 months giving a current rate payable of 6.50% and then on our standard variable rate, currently 7.00% for the remaining 17 years would require 36 monthly payments of £477.48 and 204 monthly payments of £514.21 plus one initial interest payment of £486.64.
The total amount payable would be £210,824.76 made up of the loan amount plus interest of £122,574.76 and a MEAF of £100.
The overall cost for comparison is 7.1% APRC representative. Please note this illustration is based on an interest only basis (capital and repayment is also available)
Additional information
WE HAVE NO CURRENT PLANS TO WITHDRAW THIS PRODUCT BUT IT MAY BE WITHDRAWN WITHOUT NOTICE
YOUR MORTGAGE IS SECRURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
- The tenancy agreement must be an assured shorthold tenancy for either six or twelve months. We use rental income to assess affordability and you do need to be employed/self-employed, resident in the UK and show that your finances are self-supporting. The rental income from the property must cover 135% of an interest only mortgage payment based on our stressed rate currently 8.55%. We as our valuer to assess the potential rental value of the property when carrying out the mortgage valuation. Each mortgage application is assessed on an individual basis. The property you are buying or refinancing will be used as security for the loan on a first change basis.
- Buying to let can provide you with an income and may bring a return on your capital in the medium to long-term. However, economic change within the UK means our demand for rented property fluctuates, so you should do some research before deciding to enter the buy to let market. Our mortgages explained booklet gives some basic tips on buying to let.
- THIS PRODUCT IS NOT A REGULATED MORTGAGE CONTRACT UNLESS THE TENANT IS A RELATIVE OF THE BORROWER
- Legal work is required when buying or remortgaging a property to let. This legal work is carried out by a solicitor and is payable by you. We can use the same solicitors as you, providing there is a minimum of four Approved Managers/License Holders and they are registered on The Law Society website (www.lawsociety.org.uk). Licensed conveyancers are also acceptable for residential business only. The conveyancer must be registered with the Council of Licensed Conveyancers and be in a firm with at least four Approved Managers/License Holders. If the mortgage is for a Limited Company, separate legal representation is required and all fees are payable by the borrower.
- If an existing borrower who is not moving house would like a revaluation carried out to assess which LTV tier they qualify for they will be required to pay a revaluation fee (see our Mortgages explained booklet for details).
- Loan to value (LTV) is the proportion of the value or price of the property (whichever is lower) that you borrow on a mortgage. For example, a £150,000 mortgage on a house valued at £200,000 would mean a LTV of 75%.
- For existing borrowers transferring onto this product the LTV will be calculated on the current loan outstanding and the indexed valuation held on our records. If the borrower feels the indexed valuation is inaccurate it can be reviewed by contacting our Customer Services department.
- A Mortgage Exit Administration Fee (MEAF) applies when you repay your mortgage. Please see our Tariff of charges leaflet and your European Standardised Information Sheet (ESIS) for details.
- This mortgage is portable. This means that if you sell your rented property with the early repayment charge period and take out another mortgage on the same terms and for the same amount (or more) on another property, we will waive the early repayment charge and carry it over to the new mortgage (providing the terms and status are acceptable). If the loan amount is lower, there may be a charge based on the difference between the old and the new amount.
- Charges applying to the ongoing administration of your mortgage are detailed in our Tariff of charges PDF, which you will be given before your mortgage completes.
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