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Shared Equity variable

Key Features

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 
  • Our SVR for the term of the mortgage.
Minimum deposit from applicant as a % of the property value 
  • 0%
Maximum loan to value as a % of the value of the property 
  • 75 %
Fees 
  • Application Fee: Purchase £600
  • Valuation fee applies
  • Mortgage Exit Administration Fee (MEAF): £115
Features 
  • Overpayments allowed
  • Portable
Loan size 
  • £50,000 (min) - £500,000 (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 
  • The property must be located in England or Wales.
  • Products are available to those purchasing their residential home, through Society approved shared equity schemes (ask for details), subject to product terms.
  • The mortgage term must be between 5 and 35 years.
  • The mortgage must be on a capital and interest repayment basis.
  • Minimum property value of £125,000
  • Available for purchases with an approved housing developer.
Representative example

A mortgage of £135,500 payable over 35 years on our standard variable rate, currently 4.2% for the mortgage term of 35 years would require 420 monthly payments of £619.05 plus one initial interest payment of £109.33.

The total amount payable would be £260,475.33 made up of the loan amount plus interest of £124,010.33, an application fee of £600, a valuation fee of £250 and a MEAF of £115.

The overall cost for comparison is 4.3% 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 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.
  • 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.
  • A valuation of the property 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%.
  • 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.
  • 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.
  • 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.
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