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Shared Ownership 3 year discount 95% LTV

PLEASE NOTE:

We are currently only accepting new mortgage applications up to 75% loan to value (size of mortgage in relation to the value of the property.) Existing borrowers looking to transfer their existing mortgage can do so at a higher loan to value, subject to product terms and conditions. 

Maximum loan to share for SO remains at 95%.

We are not accepting new Self Build or Holiday Let applications.

Please contact us to speak to a mortgage adviser for further information. 

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 
  • 3.29% variable. Our standard variable rate (SVR) minus 0.66% for the first 3 years changing to our SVR for the remainder of the mortgage.
Minimum share of property being purchased 
  • 25%
Maximum loan to value of share 
  • 95 %
Fees 
  • Mortgage Exit Administration Fee (MEAF): £100
Features 
  • Overpayments allowed
  • Free valuation
  • No arrangement or booking fee
Loan size 
  • Minimum loan size is £40,000. Max loan size (purchase) Up to 85% share to value = £400k Up to 90% share to value = £350k Up to 95% share to value = £300k Max loan size (remortgage) Up to 80% share to value = £400k Up to 90% share to value = £300k
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 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 term must be between 5 and 35 years.
  • The mortgage must be on a capital and interest repayment basis.
  • The property must be located in England or Wales.
  • Products are available to those purchasing or remortgaging their residential home, on shared ownership basis, subject to product terms.
  • Also available for existing borrowers to transfer their existing mortgage into, subject to payment of any ERC's that apply on their current mortgage and for existing borrowers moving house.
  • The following postcodes in London and the surrounding area are restricted to 60% loan to value: WC, EC, E, SE, N, NW, W and SW.
  • Minimum property value of £125,000
Representative example

A mortgage of £111,000 payable over 33 years initially on our standard variable rate, currently 3.95% with a discount of 0.66% for 36 months giving a current rate payable of  3.29% and then on our standard variable rate, currently 3.95% for the remaining 30 years would require 36 monthly payments of £459.82 and 360 monthly payments of £498.86 plus one initial interest payment of £279.38.

The total amount payable would be £196,522.50 made up of the loan amount plus interest of £85,422.50 and a MEAF of £100.

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 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. 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.
  • 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 zone agent, housing association or local council for the Shared Ownership scheme.
  • 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).
  • Fees

  • There is a fee of £120 for further advance loans on your existing Newbury Building Society mortgage.
  • A Mortgage Exit Administration Fee (MEAF) applies when you repay your mortgage. Please see our Tariff of charges leaflet and your European Standardised Information Sheet (ESIS) for details.
  • Timescales

  • Remortgages must complete within three months from the date the application is received. Further advances must complete within three months of the date of the further advance offer.
  • House purchases must complete within three months of the date of the formal mortgage offer. Remortgages must complete within three months from the date the application is received. Further advances must complete within three months of the date of the further advance offer.
  • Where existing borrowers transferring their mortgage are not in an early repayment charge period, the transfer must take place with two weeks of the 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. A higher lending charge may be applicable for the new mortgage.
  • 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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