Shared Ownership 3 year discount

  • Initial rate:

    4.4% variable

  • APRC:

    5.9%

  • Product fees:

    £0 purchase

    £0 remortgage

  • Maximum LTV:

    95%

  • Early repayment charge:

    No

  • Free valuation
  • Overpayments allowed
  • Portable
  • No ERC

Your home may be repossessed if you do not keep up repayments on your mortgage.

Interest rates:

  • During the first 3 years: 4.4% variable (Standard variable rate minus 1.75%)
  • After the first 3 years: 6.15% variable  (Standard variable rate)
  • For comparison purposes: 5.9% APRC

Minimum share of property:

  •  25%

Maximum LTV of share:

  • 95%

Fees:

  • Purchase application fee: £0
  • Remortgage application fee: £0
  • Mortgage exit administration fee (MEAF): £100

Loan size:

  • £40,000 (min) - £300,000 (max)

Features:

  • Newbury Building Society will pay for one standard valuation fee.

Early repayment charge:

  • No Early Repayment Charge (ERC) applicable.

Overpayments:

During 3 year deal:

  • Unlimited overpayments allowed

Representative example:

A mortgage of £118,750.00 payable over 30 years initially on our standard variable rate, currently 6.15% with a discount of 1.75% for 36 months giving a current rate payable of 4.40% and then on our standard variable rate, currently 6.15% for the remaining 27 years would require 36 monthly payments of £594.65 and 324 monthly payments of £713.40.

The total amount payable would be £252,649.00 made up of the loan amount plus interest of £133,799.00 and a MEAF of £100.

The overall cost for comparison is 5.9% APRC representative.

Who’s eligible to apply?

  • Available to those purchasing a new Shared Ownership property
  • Remortgaging a Shared Ownership property to Newbury Building Society from another lender
  • You need to be accepted by a zone agent, housing association or local council for the Shared Ownership scheme
  • Property must be located in England or Wales (some London restrictions apply)
  • The mortgage must be on a capital and interest repayment basis

 Share of property

  • Your share of the property must be between 25% and 75% of the purchase price or valuation (the lower of the two). You can borrow up to 95% of your purchase share.

Fees:

  • We will pay the first £700 of the standard mortgage valuation (this will cover properies valued up to £1,000,000). If your valuation fee is more than £700, you are responsible for paying the difference.
  • A mortgage exit administration fee (MEAF) applies when you repay your mortgage. You may have to pay this if:
    Your mortgage term comes to an end;
    You transfer the loan to another lender; or
    You transfer borrowing from one property to another.

Other charges:

  • Charges applying to the ongoing administration of your mortgage are detailed in our Tariff of Charges leaflet, which you will be given before your mortgage completes. They can also be found on our website. 

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.