Advance
Minimum £90,000: Maximum £400,000
Loan to Value (LTV)
Maximum 100% (subject to Society lending policy)
Term
Minimum 5 years: Maximum 40 years
Availability
This product is available to applicants (owner occupiers) who require the financial assistance of close family member(s) (non-owning borrower(s)) for the purchase or re-mortgage of property in mainland England and Wales for the owner occupier(s) own use and;
All applications are subject to the Society’s lending criteria, property value and satisfactory status enquiries. This product is a limited edition and cannot be guaranteed until an application has been received.
*Accepting a legal charge against your residential property may make it more difficult to raise capital against any equity and in the event of default your property may be at risk.
Maximum number of parties to the mortgage
Up to 2 owner occupiers and up to 2 non-owning borrowers are permitted on the mortgage.
The non-owning joint borrower(s) do not have rights over any equity or any profit made on the property. The non-owning joint borrower will be ‘jointly and severally’ responsible for the mortgage payments and for complying with the terms and conditions of the mortgage.
Independent legal advice
All parties to the mortgage will be required to obtain independent legal advice so that they are aware of their responsibilities and rights and what might be involved should there be a change in circumstances and the non-owning joint borrower(s) want to have their name(s) removed from the mortgage at some future date.
Valuation Fee
The Society will pay the cost of a standard mortgage valuation for the mortgaged property and where applicable the valuation of the property providing the collateral charge.
A mortgage of £200,091.00, payable over 28 years and 4 months (340 months) initially on a fixed rate for 5 years (60 months) of 6.25% and then on our current standard variable rate of 7.89% for the remaining 23 years and 4 months (280 months) would require 60 monthly payments of £1,257.07 then 280 monthly payments of £1,447.37 on a capital and interest repayment method. The total amount payable would be £482,168.29 made up of the loan amount plus interest (£281,483.29) with a £499.00 product fee, £10.00 CHAPS fee and a mortgage redemption administration fee of £85.00. The overall cost for comparison is 7.5% representative APRC.
Full Repayment
An early repayment charge equivalent to 5% of the outstanding balance applies if the loan is repaid in full within the first year,4% in the second year, 3% in the third year, 2% in the fourth year and 1% in the final year of the product period. 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 equivalent to 5% in the first year, 4% in the second year, 3% in the third year, 2% in the fourth year and 1% in the final year of the product period.
Valuation Fee
The Society will pay the cost of a standard mortgage valuation for the mortgaged property and where applicable the valuation of the property providing the collateral charge.
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.
Product Fee
A fee of £499.00 is payable. This fee can be added to the loan (subject to LTV limits).
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.
If you have any questions about this or any of our other mortgage products, then our intermediaries team is here to help.