- Mortgage type
- A fixed rate mortgage has an interest rate that stays the same for a set period of time. During the fixed rate period your monthly repayments stay the same. At the end of the fixed rate period the interest rate will change, usually to the lender's standard variable rate (SVR).
- Interest rates
- 3.19% fixed until 29 July 2027 changing to our Standard Variable Rate (SVR) for the remainder of the mortgage
- Maximum loan to value
- 75 %
- Application Fee: Existing borrower product transfer £0
- Booking Fee: Existing borrower product transfer £0
- Application Fee: £650 (purchase or remortgage)
- Booking fee: £300
- Mortgage Exit Administration Fee (MEAF): £100
- Valuation fee applies
- Loan size
- £50,000 (min) - £500,000 (max)
- £40,000 minimum loan for existing borrowers transferring on to this product.
- Early repayment charge (ERC)
- For this product the ERC period is until 29 July 2027.
- ERC is 5% to 29 July 2023, 4% to 29 July 2024, 3% to 29 July 2026, 2% to 29 July 2027 of the original loan amount (or the balance outstanding on the date an existing mortgage is transferred to this product).
- The Early Repayment Charge (ERC) period applies from the date of completion.
- During the ERC period you are permitted to make overpayments up to 10% of the original loan amount (or 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 original loan amount (or 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.
- Our Buy to let mortgage is available to you if you are looking to finance a property to let or remortgage a let property.
- Also available to existing borrowers who are selling an existing let property and purchasing a new property to let, subject to product terms.
- The mortgage term must be between 5 and 25 years.
- Applicants must own and occupy their main residence or be in tied accommodation
- The property must be located in England or Wales. All properties in the following London postcodes are restricted to 60% loan to value: E, EC, N, NW, SE, SW, W, WC. Flats in the following London postcodes are restricted to 60% loan to value CR, EN HA, IG, KT, RM, SM, TW UB.
- The maximum number of properties is 10
- Minimum property value of £125,000
A mortgage of £80,000 payable over 16 years initially on a fixed rate for 5 years at 3.19% and then on our standard variable rate, currently 4.10% for the remaining 11 years would require 60 monthly payments of £212.67 and 132 monthly payments of £273.33 plus one initial interest payment of £76.91.
The total amount payable would be £130,191.67 made up of the loan amount plus interest of £48,916.67 a booking fee of £300, an application fee of £650 a valuation fee of £225 and a MEAF of £100.
The overall cost for comparison is 4.0% APRC representative. Please note this illustration is based on an interest only basis (capital and repayment is also available).
WE HAVE NO CURRENT PLANS TO WITHDRAW THIS PRODUCT BUT IT MAY BE WITHDRAWN WITHOUT NOTICE.
YOUR MORTGAGE IS SECURED 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.
- 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.
- The tenancy agreement must be an assured shorthold tenancy for either six or twelve months. We use rental income to assess affordability, you do need to be employed/self-employed 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 out stressed rate, currently 5.50%. We ask 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 the first charge basis.
- 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. We will require separate legal representation, and all legal work is payable by you.
- A valuation of the property and rental income assessment will be required to assess the security offered for the loan. We offer a 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. It is payable in advance and cannot be refunded once the valuation has taken place. 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 price.
- You can upgrade to a Home Buyers report if you wish and if you would prefer a full building survey, we can give you the names of some local surveyors who can organise this for you. (see our Mortgages Explained booklet for valuation and home buyer fees).
- 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.
- The application fee can be added to the mortgage and is refundable if the mortgage does not take place. If you add the application fee to your mortgage, this increases the amount you borrow and will also increase your monthly payments.
- There is a fee of £120 for further advance loans on your existing Newbury Building Society mortgage.
- 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.
- House purchases must complete within three months of the date of the formal mortgage offer. Remortgages must complete within three months from the date the application is received. Further advances must complete within three months of the date of the further advance offer.
- For new build properties the mortgage offer is valid for up to 6 months. The application must be able to complete in the product time scales. Therefore, the new build property must be completed and available for occupation within six months of the mortgage offer.
- 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.