- Mortgage type
- A variable rate mortgage has an interest rate that can fluctuate. Lender's have a standard variable rate (SVR) on which they base their variable mortgages. The lender can decide when to increase or decrease this standard rate, usually based on the movement of the Bank of England's base rate.
- Interest rates
- 3.45% variable. Our Standard Variable Rate (SVR) minus 1.0% for the first 3 years changing to our SVR for the term of the mortgage.
- Maximum loan to value
- 60 %
- Application Fee: £1,500
- Valuation fee applies
- Overpayments allowed
- Loan size
- £50,000 (min) - £500,000 (max)
- £40,000 minimum loan for existing borrowers transferring on to 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 3 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.
- Our Ex Pat Buy to let variable mortgage is available to you if you are looking to finance a property to let or remortgage a let property and are a British national not currently resident in the UK.
- Also available for existing Expat borrowers who are selling an existing let property and purchasing a new property to let, subject to product terms.
- 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 following postcodes in London and the surrounding area are restricted to 60% loan to value: WC, EC, E, SE, N, NW, W and SW.
- The mortgage term must be between 5 and 35 years.
- Minimum property value of £125,000
- Applicants must own and occupy their main residence or be in tied accommodation
A mortgage of £80,000.00 payable over 20 years initially on our standard variable rate, currently 4.45% with a discount of 1.0% for 36 months giving a current rate payable of 3.45% and then on our standard variable rate, currently 4.45% for the remaining 17 years would require 36 monthly payments of £234.31 and 204 monthly payments of £302.23 plus one initial interest payment of £215.70.
The total amount payable would be £152,255.78 made up of the loan amount plus interest of £70,305.78, an application fee of £1,500, a valuation fee of £350 and a MEAF of £100.
The overall cost for comparison is 4.5% 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 YOUDO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
- 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 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.
- 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.
- 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.
- 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 on to this product the LTV will be calculated on the current loan (capital balance) 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.
- 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.
- 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.