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Home / Intermediaries / Products for intermediaries / Near Prime (Tier 2) – 2 Year Fixed

Near Prime (Tier 2) – 2 Year Fixed

Key features

Advance

Minimum £50,000: Maximum £400,000

Loan to value (LTV)

Maximum 80% (subject to the Society’s lending policy)

Term

Minimum 2 years: Maximum 40 years

Availability

This product is available for the purchase or re-mortgage of 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:

  • Mortgage arrears have not exceeded 2 within the last 2 years (payments must be up to date at the time of application)
  • Missed/late payments or defaults on Credit cards acceptable provided up to date prior at the time of application
  • Missed/late payments on Personal/unsecured Loans, Hire Purchase, Leasing have not exceeded 2 months and the account(s) must be up to date at the time of application.
  • Any number of CCJ’s not exceeding a combined maximum of £500 (do not need to be satisfied)
  • IVA or DMP over 3 years ago and satisfied 3 years before application
  • A discharge from Bankruptcy or Repossession for more than 3 years
  • 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 fee.

Initial rate
6.25%
APRC
7.9%
Overall cost for comparison
Maximum % LTV
80%

Summary information

Representative Example

A mortgage of £196,580.00, payable over 28 years and 2 months (338 months) initially on a fixed rate for 2 years (24 months) of 6.25% and then on our current standard variable rate of 7.89% for the remaining 26 years and 2 months (314 months) would require 24 monthly payments of £1,237.68 then 314 monthly payments of £1,440.71on a capital and interest only repayment basis. The total amount payable would be £483,663.08 made up of the loan amount plus interest (£286,489.08) with a £499.00 product fee, £10.00 CHAPS fee and a redemption administration fee of £85.00. The overall cost for comparison is 7.9% 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 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 2% in the first year and 1% in the second year of the product

Fees

Valuation Fee

The Society will pay the cost of a standard mortgage valuation fee.

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.

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)

 

Need to know more?

If you have any questions about this or any of our other mortgage products, then our intermediaries team is here to help.

Contact the team
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