Near Prime (Tier 2) Shared Ownership 2 Year Fixed
Key features
Advance
Minimum £25,000: Maximum £350,000
Loan to Value (LTV)
Maximum LTV – 80% 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:
- Mortgage arrears have not exceeded 2 months 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 registered 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.
- Initial rate
- 6.35%
- APRC
- 8.0%
- Overall cost for comparison
- Maximum % LTV
- 80%
Summary information
Representative Example
A mortgage of £88,703.00, payable over 30 years and 2 months (362 months) initially on a fixed rate for 2 years (24 months) of 6.35% and then on our current standard variable rate of 7.89% for the remaining 28 years and 2 months (338 months) would require 24 monthly payments of £550.92 then 338 monthly payments of £639.33 on a capital and interest repayment method. The total amount payable would be £230,266.58made up of the loan amount plus interest (£140,969.58) with a £499.00 product fee, £10.00 CHAPS fee, and a redemption administration fee of £85.00. The overall cost for comparison is 8.0% 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.