Existing Borrower Shared Ownership 3 year discount 95% LTV

Key Features

Mortgage type 
  • 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 
  • 2.74% variable. Our standard variable rate (SVR) minus 1.21% for the first 3 years changing to our SVR for the remainder of the mortgage.
Minimum share of property being purchased 
  • 25%
Maximum loan to value of share 
  • 95 %
Fees 
  • Mortgage Exit Administration Fee (MEAF): £100
Features 
  • Overpayments allowed
Loan size 
  • Minimum loan size is £40,000. Max loan size (purchase) Up to 85% share to value = £400k Up to 90% share to value = £350k Up to 95% share to value = £300k Max loan size (remortgage) Up to 80% share to value = £400k Up to 90% share to value = £300k
Early repayment charge (ERC) 
  • The Early Repayment Charge (ERC) period applies from the date of completion.
  • For this product the ERC period is 3 years from the date of completion.
  • ERC is 3% in year 1, 2% in year 2 and 1% in year 3 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 20% of the balance outstanding on the date an existing mortgage is transferred to this product if overpayments exceed 20% 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.
Eligibility 
  • Product available for existing borrowers to transfer their existing mortgage into, subject to payment of ERCs that apply on their current mortgage. Also available for further advances when taken for the purpose of staircasing.
  • The property must be located in England or Wales.
  • The mortgage term must be between 5 and 35 years.
Representative example

A mortgage of £89,594.16 payable over 18 years initially on our standard variable rate, currently 3.95% with a discount of 1.21% for 36 months giving a current rate payable of  2.74% and then on our standard variable rate, currently 3.95% for the remaining 15 years would require 36 monthly payments of £525.91 and 180 monthly payments of £571.70 plus one initial interest payment of £154.69.

The total amount payable would be £122,093.45 made up of the loan amount plus interest of £32,399.29and a MEAF of £100.

The overall cost for comparison is 3.6% APRC representative.

Additional information

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.

    Incentives

  • 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).
  • Share of property

  • Your share of the property must be between 25% and 75% of the purchase price or valuation (the lower of the two).
  • Fees

  • 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.
  • Timescales

  • Further advances must complete within three months of the date of the further advance offer.
  • Where existing borrowers transferring their mortgage are not in an early repayment charge period, the transfer must take place with two weeks of the mortgage offer.
  • Portability

  • All our mortgages are portable, which means that if you move house within an early repayment charge period the product can be transferred to your new mortgage, 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. A higher lending charge may be applicable for the new mortgage.
  • Other charges

  • 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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