Mortgage questions answered
What locations do you lend in?
We lend across the whole of mainland England & Wales. Some products may have postcode restrictions.
What is your Standard Variable Rate?
The Society's Standard Variable Rate is currently 5.09%
What is the maximum you will lend?
The maximum we’ll lend to you will depend on your individual needs and circumstances and the terms of the mortgage product. You can use our mortgage calculator which is designed to show you how much you could potentially borrow, which products are available to you and how much your monthly payments would be.
Will you lend on Right to Buy cases?
Will you consider Guarantor mortgages?
Are there any age restrictions for applicants?
Minimum: 18 years
Maximum: While there is no maximum age to which we will lend, should the loan term extend beyond your stated retirement age or 70 years, whichever is earlier, your ability to continue to pay the mortgage on a potentially reduced income must be established.
Minimum: 25 years
Maximum: 70 years
What costs/fees will I have to pay?
There are certain costs involved in taking out a mortgage:
This is a fee charged by the Society to cover the administration costs in arranging a mortgage. If you wish, you can choose to add this fee to your mortgage account (subject to loan to value limits). However, you should consider carefully before adding any fees to your mortgage as these will incur interest charges at the rate of interest applicable to your mortgage account.
These fees will normally depend on the size of the property and will include a Land Registry fee, the solicitors own conveyancing fee plus other charges and expenses known as 'disbursements'.
Higher lending charge (where applicable)
A Higher Lending Charge normally applies if you want to borrow more than 80% of the property's value and provides indemnity insurance to protect the lender against any future loss if, for example, if you go into arrears with mortgage payments or your property is repossessed. The Higher Lending Charge will normally be provided free on our products where you're borrowing 90% of the property value or less. If you're borrowing more than 90%, the Higher Lending Charge will be based on 6.02% of the borrowing above 80% of the property value.
Before we can make a lending decision, we’ll need to value your property. There are three types of valuation available:
This is a basic valuation of the property and is for the lender's benefit only. It enables the lender to decide whether the property is suitable for lending purposes.
This report is a more detailed inspection of the property than a standard valuation. You’ll receive a report on the condition of the property, stating any repairs or defects that need attention.
Full Building Survey
This survey is the most comprehensive type of report and is a thorough and complete inspection of the property and its structure.
If you're buying a property, you will need to pay local search fees. A search provides information about your property and immediate neighbourhood, which may affect your decision to purchase the property. Your solicitor will normally arrange for these to be carried out.
What is Stamp Duty?
Stamp duty is a tax payable by the purchaser of a property. It is collected by the solicitor/conveyancer prior to the sale completing. It is charged at the following rates:
Value less than £125k
Normal Rate: 0%
Additional Property*: 3%**
Value £125k to £250k
Normal Rate: 2%
Additional Property: 5%
Value £250k to £925k
Normal Rate 5%
Additional Property: 8%
Value £925k to £1.5m
Normal Rate 10%
Additional Property: 13%
Value over £1.5m
Normal Rate 12%
Additional Property: 15%
From 22 November 2017, First Time Buyers will not pay stamp duty up to £300,000. From £300,001 to £500,000 stamp duty is payable at 5% however, if the purchase price of the property is over £500,000 the stamp duty rules for people who have purchased a property before will apply to First Time Buyers.
You're classed as a First Time Buyer if you or a person you are jointly purchasing the property with hasn't owned a property before.
* Higher stamp duty rates for additional property from April 2016.
** For additional property the first £40k will attract 0% tax. From £40k to £125K the rate will be 3% on full purchase price.
You can check current rates of SDLT on the HM Revenue & Customs (HMRC) website
What documentation will be required to take out a mortgage?
You’ll need to provide:
- Your last three month’s payslips and latest P60 or your latest accounts / SA302 documents if Self Employed
- Your last three months bank statements
- Your most recent mortgage statement
- Copies of your driving licence or passport.
If any additional documentation is required, we’ll let you know.
What repayment methods are available?
Capital repayment mortgage
This is most common repayment method which is also known as capital and interest or repayment. Your monthly mortgage payment is made up of part of the amount borrowed plus interest every month. Providing all of the monthly repayments are paid in full and on time, you’ll gradually pay off the entire mortgage.
Interest only mortgage
The monthly payments you make only cover the interest on the loan. At the end of the mortgage term you’ll still need to pay back the amount you borrowed via a suitable repayment plan e.g. (Endowment policy, ISA or Pension.)
Part and part mortgage
This is a combination of capital repayment and interest only. Part of your mortgage is on capital repayment which will be paid off at the end of your mortgage term. The other part is made up of interest only where you’ll need to ensure that you have a repayment plan in place in order to repay the amount you borrowed at the end of your mortgage term.
If I move house and take out a new mortgage with the Society, would I have to pay the Early Repayment Charge?
If you move house you may be able to transfer your current mortgage to your new house subject to meeting the Society's lending criteria. This is called ‘porting’ and will be shown in your product specification sheet and in your Mortgage Offer conditions.
Providing your mortgage product is portable and you move house within the fixed or discounted period and keep the same loan with us on the same product we will pay back the early repayment charges you incur for repaying your loan early. This refund is subject to conditions which will be explained in any mortgage offer issued to you.
Are there any types of property you don't lend on?
Construction types are really numerous and varied so if you’re in any doubt as to whether we will lend on a specific property, other than traditional brick and tile, phone our Mortgage Advice Team on 01509 631950 or email email@example.com