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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 
  • 3.44% variable. Our Standard Variable Rate (SVR) with a 1.01% discount for the first 3 years, changing to our SVR for the remainder of the mortgage.
  • 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.
Maximum loan to value 
  • 95 %
  • Application Fee: Purchase £600
  • Mortgage Exit Administration Fee (MEAF): £115
  • Overpayments allowed
  • Portable
  • No higher lending charge
Loan size 
  • £50,00 (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.
  • Available to those purchasing their residential home subject to product terms.
  • The mortgage term must be between 5 and 35 years.
  • This product is available to first time buyers only.
  • New Build properties are not acceptable on this product.
  • 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.
  • Minimum property value of £125,000
Representative example

A mortgage of £227,250.00 payable over 35 years initially on our standard variable rate, currently 4.45% with a discount of 1.01% for 36 months giving a current rate payable of 3.44% and then on our standard variable rate, currently 4.45% for the remaining 32 years would require 36 monthly payments of £651.45 and 384 monthly payments of £1,110.86 plus one initial interest payment of £599.69..

The total amount payable would be £451,337.13 made up of the loan amount plus interest of £223,372.13, an application fee of £600 and a MEAF of £115.

The overall cost for comparison is 4.3% APRC representative.

Additional information



    Legal work

  • 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

  • No higher lending charge applies, we will take out an insurance policy to cover the associated risk of lending more than 75% of the purchase price/valuation of your property but we will not charge you for it.
  • 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).
  • 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%.
  • Fees

  • Application fees can be added to the mortgage provided this does not take the loan over 95% LTV. If you add the application fee to your mortgage, this increases the amount you borrow and will also increase your monthly payments. This fee is refundable if the mortgage does not take place.
  • 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.
  • 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.
  • Interest only

  • PLEASE NOTE: You should be aware that for the period you are paying interest only you are not reducing the capital borrowed. When your mortgage converts to a capital and interest repayment method, the monthly payments will increase substantially as the term of the mortgage remaining will have reduced. Please see your Key Facts Illustration (KFI) for details.
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