(LT30) 5 Year 2.71% Discount Floored RIO Further Advance

This five-year discount mortgage comes with an interest rate of 2.64%, which includes a 2.71% discount from our Standard Variable Rate for 5 years followed by our Standard Variable Rate for the remainder of the term, currently 5.35%. The interest rate for this mortgage is 'floored', which means that while the rate may increase, it will never fall below 2.49% during the discount period.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

(LT30) 5 Year 2.71% Discount Floored RIO Further Advance

Initial rate

2.64%

Subsequent Rate (SVR)

5.35%

Overall cost for comparison

4.50% APRC

Maximum loan to value (LTV)

50%

Incentives

None

Arrangement Fee

£150

Early repayment charge

None

Product Summary

Initial Rate

2.64% which includes a 2.71% discount from our Standard Variable Rate for 5 years, followed by our Standard Variable Rate for the remainder of the term, currently 5.35%. The interest rate for this mortgage is ‘floored’, which means that while the rate may increase, it will never fall below 2.49% during the discount period.

Fee Details

An arrangement fee of £150 applies to this product. This can be added to the loan on completion; however, this will result in interest being charged on it making the overall fee greater over the term of the mortgage.

Maximum LTV

50%

The maximum LTV stated refers to the total maximum LTV including the current outstanding mortgage.

Loan Size

Minimum £5,000 - Maximum £750,000

The maximum loan amount refers to the maximum further advance allowed. The total loan including the existing mortgage may not exceed £1,500,000.

Mortgage Term

There is no mortgage term, and the mortgage would continue for as long as you permanently occupy the property. The mortgage would continue until the date of sale/repayment by you or the Executor of your Estate. It would only need to be repaid after a Repayment Event has occurred.

Age Restrictions

All borrowers to be at least 55 (at date of application)

No maximum age

Purpose of Advance

For improvements to the property or another reason can be discussed with us by exception.

Portability

This further advance product is portable to a new residential mortgage on a different property when the new mortgage is taken out simultaneously with the repayment of the existing mortgage. You would need to meet our credit and affordability requirements for the new mortgage, the new property would need to be acceptable to us, and approval of a new mortgage would be subject to our prevailing Lending Policy.

Repayment Method

Interest-Only

Monthly payments of interest will be required for the period of the mortgage.

Repayment Event

A Retirement Interest-Only Mortgage is provided on the basis that the Repayment Strategy for eventual repayment of the amount owing is the sale of the mortgaged property. 

The ability to arrange a sale of the property and the repayment of the mortgage would remain within the control of the owner/borrower until a Repayment Event occurs.

This mortgage does not have a specified Mortgage Term or Repayment Date. We will only require full repayment within 6 months of a Repayment Event. A Repayment Event is defined as when:

- The property is permanently vacated, where this arises from both owners/borrowers or the final surviving owner/borrower (or the owner/borrower if it is in one name only) moving to reside in another property, or entering into sheltered accommodation or long-term care

- The date of death of the final surviving owner/borrower (or the owner/borrower if it is in one name only)

Restrictions

Minimum property valuation £125,000.

A Retirement Interest-Only Further Advance may only be taken if the existing mortgage is already a RIO Mortgage. If a RIO Further Advance is required, a product switch will need to be done to convert the existing mortgage.

Not permitted within 6 months of completion of the original mortgage. A valuation fee may be charged, and a credit and affordability assessment will be conducted.

Early Repayment Charge Details

No early repayment charges apply to this mortgage.

Representative Example

A mortgage of £23,999.00, payable over 15 years, on an interest-only repayment basis, with an initial discounted rate of 2.64%, which includes a 2.71% discount from our Standard Variable Rate (SVR) for 5 years and then on our SVR, currently 5.35%, for the remaining 10 years. The initial term would require 60 monthly payments of £52.80, followed by 120 monthly payments of £107.00.

The total amount payable would be £40,402.00, made up of the loan amount (£23,999.00), plus interest (£16,008.00), Additional Borrowing Arrangement Fee (£150) and a Standard Valuation Fee (£245).

The overall cost for comparison is 4.50% APRC.

This is a worked example of repayments specifically relating to the further advance part only of the loan. This information may not be representative of your personal circumstances and your payments may differ from this. Representative data as of 1st January 2022.

Important Notes:

Once the product matures the interest rate will revert to our Standard Variable Rate (SVR) unless a new product is taken out. Our SVR is currently 5.35%. This is set by us and may go up or down in the future.

The Overall Cost for Comparison is given as the Annual Percentage Rate of Charge (APRC) and includes all charges incurred relating to the mortgage/product. The APRC enables you to compare the cost of different products.

The Maximum Loan to Value (LTV) is calculated by us using your current mortgage balance, the proposed further advance, and our current assessed valuation of your property.

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH REPAYMENTS ON YOUR MORTGAGE