- 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
- 2.50% variable. Our Standard Variable Rate (SVR) with a 1.45% discount for the first 5 years, changing to our SVR for the remainder of the mortgage
- Maximum loan to value
- 75 %
- Application fee: £950
- Mortgage Exit Administration Fee (MEAF): £100
- Valuation fee applies
- Overpayments allowed
- Loan size
- £50,000 (min) - £500,00 (max)
- £40,000 minimum loan for existing borrowers transferring onto this product
- Early repayment charge (ERC)
- The Early Repayment Charge (ERC) period applies from the date of completion.
- For this product the ERC period is 5 years from the date of completion
- The ERC is 2% of the original loan amount (or 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 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.
- Also available to existing borrowers who are selling an existing let property and purchasing a new property to let, subject to product terms.
- Our Buy to let discount mortgage is available to you if you are looking to finance a property to let.
- The mortgage term must be between 5 and 35 years.
- Applicants must own and occupy their main residence or be in tied accommodation
- Properties must be located in the following post code areas; AL, BA, BH, BN, BS, DT, EX, GL, GU, HA, HP, HR, KT, LU, MK, NN, OX, PO, RG, RH, SG, SL, SM, SN, SP, SO, TA, TW, UB, WD, WR.
- The maximum number of properties is 10
- We will also consider properties in London and the surrounding area in the following postcodes: WC, EC, E, SE, N, NW, W and SW. These postcodes are restricted to 60% LTV.
- Minimum property value of £125,000
A mortgage of £230,000 payable over 17 years initially on our standard variable rate, currently 3.95% with a discount of 1.45% for 60 months giving a current rate payable of 2.50% and then on our standard variable rate, currently 3.95% for the remaining 12 years would require 60 monthly payments of £479.17 and 144 monthly payments of £757.08 plus one initial interest payment of £471.31.
The total amount payable would be £369,891.03 made up of the loan amount plus interest of £138,241.03, an application fee of £950, a valuation fee of £600 and a MEAF of £100.
The overall cost for comparison is 3.5% APRC representative. Please note this illustration if based on an interest only basis (capital and repayment is also avaliable).
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 of up to 3 years. 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 (125% for basic rate tax payers) based on our stressed rate, currently 5.75%. 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 and is payable by you. We can use the same solicitors as you, providing there is a minimum of four Approved Managers/License Holders 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 four Approved Managers/License Holders.
- 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.
- 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).
- Where ‘free legals’ apply, they are for remortgages only. The legal work will be carried out by Newbury Building Society using title insurance and the cost, which covers HM Land Registry fees, a title insurance premium and other disbursements will be paid by us. Title insurance is only available to applicants who are UK Nationals and resident in the UK at the time of completion. If for any reason the remortgage does not take place, you will need to pay any legal costs incurred (maximum £250). The ‘free legals’ service does not include the legal work involved for registering unregistered land or transferring property from one person to another (the names and addresses of the borrowers must agree precisely with those held at HM Land Registry). If legal work is required in these areas, a solicitor will be required to act at your cost.
- 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.
- 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.
- 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.