Mortgage product
First Time Buyer Offset
| The initial variable interest rate for the mortgage is: | ||
3.95% | ||
| changing to our SVR, for the remainder of the mortgage, currently: | ||
4.45% | ||
| The overall cost for comparison is: | ||
4.3% | APR | |
Rates shown above are based on our 5 year discount product and LTV of 95%. The actual rate available will depend on your circumstances. Ask for a personalised illustration. | ||
| Important information: Read the details below and our First Time Buyer Offset PDF to help you understand how it works. | ||
Availability
Available to customers over 21 years who apply to us directly where the property is located in postcode areas: AL, BA, BH, BN, BS, DT, GL, GU, HA, HP, KT, MK, OX, PO, RG, RH, SL, SN, SP, SO, TW, UB, WD. For existing members of two years or more the property can be located in England or Wales. For further details please read the Availability section below.
Mortgage brokers only - restrictions apply, refer to the mortgage broker homepage.
How much can you borrow?
Find out with our online mortgage calculator
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| 3 Year Discount | 5 Year Discount | |
| Maximum loan to value | 95% The mortgage must be on a capital and interest repayment basis. | |
|---|---|---|
| Initial interest rate | 3.95% variable | |
| Standard variable rate (SVR) | Newbury Building Society's current SVR is 4.45% (overall cost for comparison is 4.5% APR). Mortgage interest is charged on a daily basis. | |
| Offer | Our SVR with a 0.50% discount for the first 3 years changing to our SVR for the remainder of the mortgage. | Our SVR with a 0.50% discount for the first 5 years changing to our SVR for the remainder of the mortgage. |
| The overall cost for comparison is: | 4.4% APR | 4.3% APR |
| Benefits |
| |
| Loan size | £50,000 (Min) - £300,000 (Max) | |
| Is an Early Repayment Charge (ERC) payable? |
|
|
| Application fee | No | |
| Standard mortgage valuation fee | Yes | |
| Portable | Yes | |
Important information
We will use the total mortgage balance when assessing whether the mortgage is affordable for you.
Your monthly payment is calculated on the total mortgage balance. The interest is calculated on the
mortgage balance after offsetting.
When your mortgage interest rate changes, your new payment will be based on the outstanding
mortgage balance and remaining mortgage term. If you are making overpayments to your mortgage
in order to reduce your term, then you may want to adjust the amount of your overpayments to
compensate. Payments cannot be made directly from the offset savings accounts.
| Key features of First Time Buyer Offset Savings account | |
|---|---|
| Account Name | First Time Buyer Offset Savings |
| Interest rates (AERs) | 0% |
| Tax status | n/a |
| Conditions for bonus payment | n/a |
| Withdrawal arrangements | No withdrawals are permitted. |
| Access | No access until the mortgage LTV represents 75% of the property value. |
| Additional Info | |
|---|---|
| Minimum opening balance | The minimum opening and operating balance is the amount required to bring the loan to value (LTV) on the First Time Buyer Offset Mortgage to 75% LTV at the time of purchase. |
| Availability |
|
| Age requirements | 18 years and over. |
| Restricted deposit |
|
| Charges | No charges. |
| Additional benefit | Member Loyalty Card enabling discounts and special offers from local traders who participate in our scheme. |
Important information - Independent legal advice
Your savings enable us to help your family member buy their first home by providing a mortgage up to 95% of the value of the property.
We will require you to sign a legal charge agreement waiving your rights to withdraw any of the savings until either the loan is fully paid or the loan to value is reduced to 75%. This agreement allows us to use the savings for any missed payments and to pay off any shortfall on the sale of the property.
To ensure you understand this, you must take independent legal advice before exchange of contracts in the home buying process and before you sign the legal charge document. The legal advice must be from a firm separate from the firm acting for the society on the mortgage. It cannot be a different partner in the same firm.
Availability
Available if you are 21 years and over to those purchasing their first home or moving to a new property. For new members the property must be located in the following postcode areas: AL, BA, BH, BN, BS, DT, GL, GU, HA, HP, KT, MK, OX, PO, RG, RH, SL, SN, SP, SO, TW, UB, WD. For existing members of two years or more the property can be located in England or Wales. The mortgage term must be between 5 and 30 years. Properties where the valuation is less than £100,000 must be referred to our Customer Service department for initial approval.
Legal costs
Legal work is required when buying your home. 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 two partners 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 two partners.
Applicants for offset savings accounts must take independent legal advice. This legal advice must be independent and taken before exchange of contracts in the home buying process. It must be from a different firm than the one used for buying the property. It cannot be a different partner from the same firm.
Valuation fee
A valuation of the property will be required to assess the security offered for the loan. We offer the choice of either a basic mortgage valuation, which is for us to assess security only, or a Home Buyer's Report that will give you a more comprehensive guide to the condition of the property. If you would like a full building survey, we will give you the names of some local surveyors who you can contact to give precise instructions and negotiate a price. (see our Mortgages explained booklet for full details).
Maximum loan to value
Loan to Value (LTV) is the proportion of the value or price of the property (whichever is the lower) that you borrow on a mortgage. For example, a £75,000 mortgage on a house valued at £100,000 would mean a LTV of 75%.
Portability
All our mortgages are portable. This means that if you move house within an early repayment charge period the offset mortgage abd savings can be transferred to your new property, up to the value of the product outstanding at redemption, without charge. If the loan amount on your new mortgage is lower, there may be a charge based on the difference between the old and the new loan amount. Any new mortgage is subject to our lending policy at the time of application.
Other charges
A Mortgage Exit Administration Fee (MEAF) applies when you repay your mortgage. Please see our Tariff of charges PDF and your Key Facts Illustration (KFI) for details. 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.
WE HAVE NO CURRENT PLANS TO WITHDRAW THIS PRODUCT BUT IT MAY BE WITHDRAWN WITHOUT NOTICE
YOUR HOME MAY REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
