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Help to Buy 5 year discount

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 
  • 1.74% variable. Our Standard Variable Rate (SVR) with a 2.46% discount for the first 5 years, changing to our SVR for the remainder of the mortgage.
Maximum loan to value 
  • 75 %
Fees 
  • Application Fee: Purchase £600
  • Application Fee: Remortgage £850
  • Mortgage Exit Administration Fee (MEAF): £115
Features 
  • Overpayments allowed
  • Free valuation
  • Portable
Loan size 
  • £50,000 (min) - £450,000 (max)
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 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 20% 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 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 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.
Eligibility 
  • The mortgage must be on a capital and interest repayment basis.
  • The property must be located in England or Wales.
  • Also available for existing borrowers to transfer their existing mortgage onto, subject to payment of any ERC's that apply on their current mortgage and for existing borrowers moving house.
  • The mortgage term must be between 5 and 35 years.
  • Maximum property value of £600,000
  • Products are available to those purchasing their residential home, through the Help to Buy scheme, subject to product terms.
  • Minimum property value of £125,000
Representative example

A mortgage of £356,250 payable over 29 years initially on our standard variable rate, currently 4.2% with a discount of 2.46% for 60 months giving a current rate payable of 1.74% and then on our standard variable rate, currently 4.2% for the remaining 24 years would require 60 monthly payments of £1,306.54 and 288 monthly payments of £1,696.02 plus one initial interest payment of £136.09.

The total amount payable would be £567,097.25 made up of the loan amount plus interest of £210,132.25, an application fee of £600 and a MEAF of £115.

The overall cost for comparison is 3.4% 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.

    Legal costs

  • Legal work is required when buying your home and is carried out by a solicitor, payable by you. We can use the same solicitors as you, providing there is a minimum of four Approved Managers/ Licence Holders and they are registered on The Law Society website (www.lawsociety.org.uk). Licenced conveyancers are also acceptable for residential business only. The conveyancer must be registered with the Council of Licenced Conveyancers and be in a firm with at least four Approved Managers/Licence Holders.
  • Incentives

  • We will carry out a standard mortgage valuation at our cost, providing the mortgage completes. If the mortgage does not complete and the valuation has been carried out, you are responsible for paying it. Where the valuation fee is payable, our normal scale of valuation fees apply.
  • 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).
  • 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).
  • Qualification

  • You need to be accepted by a local Help to Buy agent for the Help to Buy scheme.
  • Maximum loan to value

  • 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%.
  • All mortgages must be on a capital and interest repayment basis.
  • 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.
  • Fees

  • 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 Key Facts Illustration (KFI) for details.
  • Timescales

  • House purchases must complete within three months of the date of the formal mortgage 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.
  • 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.
  • 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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Contact

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