(BU04) 5 Year 1.11% Discount Floored Buy for Uni Purchase Only

This five-year discount mortgage comes with an interest rate of 4.24%, which includes a 1.11% 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 4.09% during the discount period.

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

(BU04) 5 Year 1.11% Discount Floored Buy for Uni Purchase Only

Initial rate

4.24%

Subsequent Rate (SVR)

5.35%

Overall cost for comparison

5.10% APRC

Maximum loan to value (LTV)

100%

Incentives

None

Arrangement Fee

£899

Early repayment charge

None

Product Summary

Initial Rate

4.24% which includes a 1.11% 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 4.09% during the discount period.

Fee Details

£899 – This can be added to the loan on completion, as long as the loan to value does not exceed 100%. However, this will result in interest being charged on it making the overall fee greater over the term of the mortgage.

Maximum LTV

100% - If over 80%, then an additional legal charge over parents’ property is required.

If a charge over property is provided, then this must be equivalent to the amount of the loan that exceeds 75% of the value of the property being purchased.

Loan Size

Minimum £125,000 - Maximum £400,000

Mortgage Term

25 years

Portability

This mortgage 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

Capital & Interest or Interest-Only

Incentives

We will offer a free valuation on the parents’ property being used for security.

Restrictions

Lending restricted to England and Wales.

Minimum property value of £125,000 is required.

Parental joint borrower required.

Youngest borrower (student) to be less than 30 years old at application and in full-time education, with at least one year remaining on university course.

Maximum age at end of term is 75 or selected retirement date.

Early Repayment Charge Details

No early repayment charges apply to this mortgage.

Representative Example

A mortgage of £135,396.00, payable over 14 years, on an interest-only repayment basis, with an initial discounted rate of 4.24%, which includes a 1.11% discount from our Standard Variable Rate (SVR) for 5 years and then on our SVR, currently 5.35%, for the remaining 9 years. The initial term would require 60 monthly payments of £478.40, followed by 108 monthly payments of £603.64.

The total amount payable would be £230,817.12, made up of the loan amount (£135,396.00), plus interest (£93,897.12), Arrangement Fee (£899), Standard Valuation Fee (£205), Solicitor Fee for the purchase (£250), Funds Transfer Fee (£15), and a Mortgage Exit Fee (£155).

The overall cost for comparison is 5.10% APRC.

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 LTV is calculated by us using your current mortgage balance and our current assessed valuation of your property.

This Important information should be read in conjunction with our Buy for Uni product

Buy for Uni: What you need to know...

READ IMPORTANT BUY FOR UNI INFORMATION

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