Retirement Interest Only 5 year discount

  • Initial rate:

    5.15% variable

  • APRC:

    6.0%

  • Product fees:

    £600 purchase

    £850 remortgage

    £0 Existing borrower transfer

  • Maximum LTV:

    50%

  • Early repayment charge:

    Yes

  • Overpayments allowed
  • Portable
  • Free valuation

Your home may be repossessed if you do not keep up repayments on your mortgage.

Interest rates:

  • During the first 5 years: 5.15% variable (Standard variable rate minus 2.11%)
  • After the first 5 years: 6.15% variable  (Standard variable rate)
  • For comparison purposes: 6% APRC

Maximum LTV:

  • 50%

Fees:

  • Purchase application fee: £600
  • Remortgage application fee: £850
  • Existing borrower product transfer application fee: £0
  • Mortgage exit administration fee (MEAF): £100

Loan size:

  • £50,000 (min) - £500,000 (max)
  • £40,000 for existing borrowers transferring onto this mortgage

Features:

  • Newbury Building Society will pay the first £700 of the standard mortgage valuation (this will cover properties valued up to £1,000,000).

Early repayment charge:

During 5 year deal:

  • Year 1 - 3% of loan amount
  • Year 2 – 2% of loan amount
  • Year 3 – 1% of loan amount

Overpayments:

During 5 year deal:

  • 20% of loan amount can be paid per year, without charge. 

Representative example:

A mortgage of £375,850.00 (including an application fee of £850) payable over 22 years initially on our standard variable rate, currently 6.15% with a discount of 1% for 60 months giving a current rate payable of 5.15% and then on our standard variable rate, currently 6.15% for the remaining 17 years would require 60 monthly payments of £1,613.02 and 204 monthly payments of £1,926.23.

The total amount payable would be £865,682.12 made up of the loan amount plus interest of £489,732.12 and a MEAF of £100.

The overall cost for comparison is 6.0% APRC representative.

Please note the term shown is for illustrative purposes only. The actual term of the loan may be longer or shorter than the term shown.

Who’s eligible to apply?

  • Retirement Interest Only (RIO) mortgages are termless interest only mortgages available to those aged between 60 and 80 (the maximum age at application is 80), retired and in receipt of a pension or other ongoing income. Minimum income per application is £30,000.
  • Available to those purchasing or remortgaging their residential home subject to product terms.
  • Also available for existing borrowers to transfer their existing mortgage into, subject to payment of any ERC's that apply on their current mortgage and for existing borrowers moving house.
  • Mortgage will be on an Interest only basis.
  • The property must be located in England or Wales.

Fees:

  • Application fees can be added to the mortgage and are refundable if the mortgage does not take place. 
  • We will pay the first £700 of the standard mortgage valuation (this will cover properies valued up to £1,000,000). If your valuation fee is more than £700, you are responsible for paying the difference.
  • If an existing borrower who is not moving house would like a revaluation carried out they will be required to pay a revaluation fee.
  • There is a fee of £120 for any addional borrowing on your existing Newbury Building Society mortgage.
  • A mortgage exit administration fee (MEAF) applies when you repay your mortgage. You may have to pay this if:
    Your mortgage term comes to an end;
    You transfer the loan to another lender; or
    You transfer borrowing from one property to another.

Other charges:

  • Charges applying to the ongoing administration of your mortgage are detailed in our Tariff of Charges leaflet, which you will be given before your mortgage completes. They can also be found on our website. 

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.

Retirement Interest only notes:

  • You should be aware that for the period you are paying interest only you are not reducing the capital borrowed.
  • The mortgage is repayable on death or a permanent move into residential care.
  • In the case of a joint mortgage, we will take into account the ability of the surviving borrower to meet the mortgage commitment on death of a joint borrower or when a joint borrower moves into long term care. 
  • You are strongly recommended to seek independent legal advice before entering into this mortgage contract. 
  • You are strongly recommended to discuss this mortgage arrangement with your family or anyone else who may be affected, and to consider a Lasting Power of Attorney.