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Home Starter 3 year discount for first time buyers

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 
  • Our SVR with a 1.71% discount for the first 3 years. THIS MORTGAGE IS ON AN INTEREST-ONLY BASIS FOR AN INITIAL PERIOD OF 3 YEARS. After the initial interest-only period the mortgage will be converted to capital and interest repayment method for the remainder of the mortgage at our SVR.
Maximum loan to value 
  • 90 %
Fees 
  • Application Fee: Purchase £600
  • Mortgage Exit Administration Fee (MEAF): £115
Features 
  • No higher lending charge
  • Free valuation
  • Overpayments allowed
  • Portable
Loan size 
  • £50,000 (min) - £300,000 (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.
  • During the ERC period you are permitted to make overpayments up to 10% of the original loan amount 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 if you repay your mortgage in full during the ERC period. The ERC will also be levied on previously permitted overpayments.
Eligibility 
  • This product is available to first time buyers only.
  • Properties must be located in the following post code areas; AL, BA, BH, BN, BR, BS, CB, CM, CO, CR, CT, DA, DT, EN, EX, GL, GU, HA, HP, HR, IG, IP, KT, LU, ME, MK, NN, OX, PL, PO, RM, RG, RH, SG, SL, SM, SN, SP, SO, SS, TA, TN, TQ, TR, TW, UB, WD and WR.
  • Available to those purchasing their residential home subject to product terms.
  • The mortgage term must be between 5 and 35 years.
  • Minimum property value of £125,000
Representative example

A mortgage of £227,250 payable over 35 years initially on our standard variable rate, currently 4.2% with a discount of 1.71% for 36 months giving a current rate payable of 2.49% and then on our standard variable rate, currently 4.2% for the remaining 32 years would require 36 monthly payments of £811.19 and 384 monthly payments of £1,016.79 plus one initial interest payment of £434.08.

The total amount payable would be £420,799.28 made up of the loan amount plus interest of £192,834.28, an application fee of £600 and a MEAF of £115.

The overall cost for comparison is 3.9% 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 ANY OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

    Legal costs

    Incentives

    Maximum loan to value

    Fees

    Timescales

    Portability

    Other charges

    Interest only

  • 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.
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