Impaired Credit (Tier 3) Shared Ownership 2 Year Fixed
Key features
Advance
Minimum £25,000: Maximum £350,000
Loan to Value (LTV)
Maximum LTV – 70% of share to be purchased or re-mortgaged
Term
Minimum 2 years: Maximum 40 years
Availability
This product is available for the purchase or re-mortgage of a Shared Ownership property in mainland England and Wales for the applicants own use. All applications are subject to the Society’s lending criteria, property valuation and satisfactory status enquiries. This product is a limited edition and cannot be guaranteed until an application has been received.
This product is available to borrowers with any one of the following:
- Missed/late payments exceeding 2 months, or defaults registered within the last 2 years (Credit cards, personal loans, HP, Leasing)
- Arrears on mortgage payments 3 months or more within the last 2 years and are up to date 6 months prior to application,
- Any number of CCJ’s with a total combined amount of £500 to £5,000 either satisfied or not (but none registered in last 12 months)
- Unsatisfied/Satisfied IVA’s or DMP’s registered over 2 years or more conducted satisfactorily
- A discharge from Bankruptcy for more than 2 years prior to application
- A previous repossession more than 3 years ago
- No more than 3 Payday Loans in the last 12 months with no missed payments
Free valuation
The Society will pay the cost of a standard mortgage valuation.
- Initial rate
- 6.55%
- APRC
- 8.1%
- Overall cost for comparison
- Maximum % LTV
- 70%
Summary information
Representative Example
A mortgage of £54,976.00, payable over 28 years and 5 months (341 months) initially on a fixed rate for 2 years (24 months) of 6.55% and then on our current standard variable rate of 7.89% for the remaining 26 years and 5 months (317 months) would require 24 monthly payments of £355.65 then 317 monthly payments of £402.55 on a capital and interest repayment method. The total amount payable would be £136,976.73 made up of the loan amount plus interest (£81,406.73) with a £499.00 product fee, £10.00 CHAPS fee, and a redemption administration fee of £85.00. The overall cost for comparison is 8.1% representative APRC.
Early Repayment Charge
Full Repayment
An early repayment charge equivalent to 2% of the outstanding balance applies if the loan is repaid in full within the first year and 1% in the second year. Thereafter the Society’s standard repayment charges will apply – see Tariff of Charges. The early repayment charge may be refunded if the borrower(s) take out a new mortgage with the Society subject to meeting the Society’s criteria.
Partial Lump Sum Repayment
Up to 10% of the advanced amount may be repaid in any year of the product rate period without charge. Repayments made above the 10% limit will be subject to a charge of 2% in the first year and 1% in the second year.
Fees
CHAPS Fee
On completion, the advance will be released to the appointed Solicitor by CHAPS (Clearing House Automated Payment Service). This is at a cost to the borrower of £10.00.
Valuation Fee
The Society will pay the cost of a standard mortgage valuation.
Mortgage Exit Administration Fee /Additional Fees
£85.00 Redemption Administration Fee. Additional administration fees may apply during the life of your mortgage. Details of these can be found in the Tariff of Charges leaflet.
Product Fee
A fee of £499.00 is payable. This fee can be added to the loan (subject to LTV limits)
How to apply
The Loughborough mortgage service is tailored to each individual and offered on a fully advised basis where applicable. Our qualified advisers will spend time with you to understand your mortgage needs and financial circumstances before recommending the most suitable solution for you.
To get in touch with our mortgage team either telephone us on 01509 389282, email at [email protected] or request a call back.
Terms and Conditions
Before opening this account please read our General Terms and Conditions.
Mortgage repayments
Your home may be repossessed if you do not keep up repayments on your mortgage.
Still need help?
Our help section is full of useful information, but if you can’t find what you need you can pop into one of our branches. Or if you’d rather just chat, give us a call.
Call us on 01509 389282
Monday – Friday
9am – 5pm
Weekends and bank holidays
Closed