(BU04) 5 year 1.11% Discount Floored

This five-year discount mortgage comes with an interest rate of 4.09%, 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 5.20%. 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

Initial rate

4.09%

Subsequent Rate (SVR)

5.20%

Overall cost for comparison

4.90% APRC

Maximum loan to value (LTV)

100%

Incentives

None

Arrangement Fee

£899

Early repayment charge

None

Product Summary

Initial Rate

This five-year discount mortgage comes with an interest rate of 4.09%, 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 5.20%. 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.

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.

Restrictions

Lending restricted to England and Wales.

Parental joint borrower required.

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

Not available for re-mortgage.

If over 80% LTV then an additional legal charge over parent's 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.

Maximum mortgage term available is 25 years.

Maximum age at end of term is 75.

Loan Size

Minimum £125,000

Maximum £400,000

Additional Information

We will offer a free valuation on the parents' property.

Fee Details

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

Early Repayment Charge Details

No early repayment charges apply to this mortgage.

Representative Example

A mortgage of £138,200 payable over 15 years on an interest-only repayment basis with an initial rate of 4.09% which includes a 1.11% discount from our Standard Variable Rate for 5 years and then on our Standard Variable Rate, currently 5.20% for the remaining 10 years. The first 5 years would require 60 monthly payments of £471.03 followed by 120 monthly payments of £598.87.

The total amount payable would be £239,850.20 made up of the loan amount plus interest (£100,126.20), 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 4.90% APRC representative.

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 5.20%. 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 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.