Newbury Building Society

Availability

Available for properties within our normal operating area only:  postcode areas RG, OX, HP, SN, SL, SP, SO, GU. 

For purchases if you have a purchase share deposit of 5% or more.

What interest rate do you get?

Shared Equity	Rate	Rate Type	Period
An interest rate of	6.35%	SVR	Mortgage term
The overall cost for comparison is	6.6% APR	N/A	N/A

Is it for you?

Consider our Shared equity mortgage if you:

• Are looking to buy your home or switch your mortgage to us from another lender (known as a 're-mortgage') on a shared equity (part buy, part rent) basis with a developer or builder.
• Own or will own a minimum 50% share in your home.
• Have at least 5% deposit from your own money.
• Would like to pay no fees to set up your mortgage.

It is available to you if you are using it to buy a house or switching your mortgage to us from another lender without moving home (known as a 'remortgage') on a shared equity basis. Please remember that you need to be accepted for one of these schemes by a developer or builder.

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.

The property must be located within our operating area.

How much can you borrow with this product?

The minimum loan amount for this mortgage is £40,000. There is no maximum loan amount, other than that determined by what you can afford. Please take a look at our Lending criteria for more details.

We can lend up to 95% of the share you own or will own in your property. If you are buying your home this means you will need to make a contribution towards a deposit of at least 5% of the purchase share value (other than the share being purchased by your landlord).

The loan amount must not exceed 75% of the property’s purchase price or valuation, whichever is the lower of the two amounts.

What fees will you need to pay?

We will pay for a standard mortgage valuation, providing your mortgage proceeds (completes). Your landlord may require you to commission a home buyer's report. If this is the case, you will need to pay the difference. To see what the fee will be in your case please refer to our information regarding Valuation fees.

There are no Higher lending charges payable on this mortgage as the loan amount must not exceed 75% of the property’s purchase price or valuation, whichever is the lower of the two amounts.

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.

Is there any charge for repaying your mortgage early?

If you repay your mortgage in full during the first three years of the mortgage, you will need to pay an early repayment charge of 2% of the original loan amount.

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 overpayments of any amount, without charge at any time during the mortgage term and as long as you do not completely repay the loan in the first three years of the mortgage.

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?

There are some requirements for the shared equity lease, which will be set up by your landlord and checked by your solicitor. These are:

• Contain a mortgagee protection clause
• Have staircasing rights
• Contain notice of forfeiture
• Have full assignment rights
• Have a minimum term of 85 years

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

Products may be withdrawn without notice.

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.