(D158) 3 Year 2.45% Discount

This discount mortgage comes with an initial rate of 5.65% which includes a 2.45% discount from our Standard Variable Rate for 2 years, followed by our Standard Variable Rate for the remainder of the term, currently 8.10%. The interest rate for this mortgage is ‘floored’, which means that while the rate may increase, it will never fall below 2.50%.


(D158) 3 Year 2.45% Discount

Initial rate


Subsequent Rate (SVR)


Overall cost for comparison

7.60% APRC

Maximum loan to value (LTV)




Arrangement Fee


Early repayment charge


Is this product right for you?

What are the key features of this product?

This is a variable rate mortgage product which means monthly payments can go up or down during the term of the discount period. This is different to a fixed rate product. The rate of interest is linked to the Society’s Standard Variable Rate (SVR) for mortgages. During the first 3 years, the interest rate charged will be 2.45% below the Society’s SVR – this is the discount period and rate.

The lowest interest rate you might pay during this period will be 2.50% which is called the “floored” rate.  This means that if the Society’s SVR is below 4.95% at any time during the period of the product, you will not benefit from the full rate of discount of 2.45%.

Three months before this product ends, we will contact you with the options available. If you do nothing at the end of the product period, you will move to the Society’s SVR which may mean your payments increase.

This product is available on:

  • A Capital & Interest repayment basis. This means your monthly repayments will contribute to paying back the initial loan as well as the monthly interest on the remaining balance. Over time, this will mean the amount owed will reduce and the interest will also reduce.

  • An Interest-Only repayment basis. This means that your monthly repayments will only pay back the interest on your initial loan amount. The capital balance will not reduce. You will need to agree with us up front, a suitable method of repaying the initial loan at the end of the mortgage term.

This product is available for properties in England and Wales.

There is a £499 fee payable for setting up this mortgage.

This product is available for loans of at least £100,000 and up to £1,000,000.

This product comes with a £200 contribution towards your legal fees.

This product comes with a free valuation (up to the value of £1,000) of the property you are purchasing.

Who is this product designed for?

This product is designed for customers wanting a residential mortgage who:

  • are looking to purchase or remortgage a property.

  • have at least a 20% (40% for interest only) deposit/equity in their property.

  • have surplus monthly income to manage their finances if the Society’s SVR goes up which would mean an increase to the monthly repayment amount.

  • do not intend to make overpayments of more than 10% in any of the first 3 years.

Who is this product NOT intended for?

This product is not intended for customers who:

  • want or need the certainty of a fixed monthly repayment for the term of the product.

  • plan to repay more than 10% of the loan in any year within the first 3 years as this will result in a charge.

Does this product deliver "fair value" for customers?

Being a mutual building society, all our products are priced to balance the needs of our Member savers and borrowers and the Society’s operating costs to support the Society’s long-term future.

We support our mortgage customers by providing each applicant with a bespoke, personal, and individual approach. We largely deal with people whose circumstances do not fit into the standard requirements of automated decision-making processes used by larger lenders.

We believe this product represents fair value for the customers it was designed for considering the customer support provided before, during and after the application.

Product Summary

Initial Rate

5.65% which includes a 2.45% discount from our Standard Variable Rate for 3 years, followed by our Standard Variable Rate for the remainder of the term, currently 8.10%.

The interest rate for this mortgage is ‘floored’, which means that while the rate may increase, it will never fall below 2.50%.

Fee Details

£499 – 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

80% - Capital & Interest

60% - Interest-Only

Loan Size

Minimum £100,000 - Maximum £1,000,000

Mortgage Term

35 years - Capital & Interest 

25 years – Interest-Only


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*

*Conditions apply, please speak to us


The Society will cover the cost of one basic mortgage valuation up to a maximum cost of £1,000; where the cost exceeds this, you will need to pay the difference.

On legal completion, we will contribute £200 towards your legal cost, which will be sent to your solicitor.


Lending restricted to England and Wales.

This product is available for purchases and remortgages.

Minimum property value of £140,000 is required.

Early Repayment Charge Details

A full or partial capital repayment, which exceeds 10% of the capital balance amount in any one year during the discount period, will attract an early repayment charge of:

3% in the 1st year
2% in the 2nd year
2% in the 3rd year

Representative Example

A mortgage of £214,890.00 payable over 22 years, on a capital & interest repayment basis, with an initial discounted rate of 5.65%, which includes a 2.45% discount from our Standard Variable Rate (SVR) for 3 years and then on our SVR, currently 8.10%, for the remaining 19 years. The initial term would require 36 monthly payments of £1,423.75, followed by 228 monthly payments of £1,710.70.

The total amount payable would be £442,163.60, made up of the loan amount (£214,890.00), plus interest (£226,404.60), Arrangement Fee (£499), Solicitor Fee (£250), Funds Transfer Fee (£20), and a Mortgage Exit Fee (£100).

The overall cost for comparison is 7.60% APRC.

This information may not be representative of your personal circumstances and your payments may differ from this. Representative data as of 1st January 2023.

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 8.10%. 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.

3 easy ways to apply

Apply online


Complete our quick online enquiry form and we'll get back to you within one working day.

Apply in branch


Arrange to meet an expert Mortgage Adviser in one of our six branches.

Apply by phone

Apply By Phone

0161 429 4318