Our Joint Borrower Sole Proprietor 2 Year Discount Variable Mortgage includes a discount of 2.59% off the Society’s standard variable mortgage interest rate (SVR), currently 5.34% for 2 years giving a current rate payable of 2.75% which will not go below a floor of 1.75%. At the end of the 2 years the Society’s prevailing standard variable mortgage interest rate will apply. The SVR interest rate charged cannot go below 2%.
Joint Borrower Sole Proprietor 2 Year Discount
Minimum £25,000: Maximum £400,000
Loan to Value (LTV)
Maximum 90% (subject to the Society’s lending policy)
Minimum 2 years: Maximum 40 years
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.
It is available as a Joint Borrower Sole Proprietor mortgage only. All applications are subject to the Society’s general lending criteria, property valuation and satisfactory status enquiries. This product is a limited edition and cannot be guaranteed until an application has been received.
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.
The Society will pay the cost of a standard mortgage valuation fee.
The interest rate charged won’t fall below 1.75% during the discount period and 2% after that time.
An early repayment charge equivalent to 2% of the advance applies if the loan is repaid in full within the first 2 years. 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%.
On completion, the advance will be released to the appointed Solicitor by CHAPS (Clearing House Automated Payment Service). A fee of £30.00 is payable on completion. This fee can be added to the loan subject to LTV limits.
Higher Lending Charge
For loans above 80% LTV the Society will arrange mortgage indemnity insurance. For mortgages up to and including 90% LTV, this charge will be paid by the Society.
A valuation for mortgage purposes will be required on application. The Society will pay the cost of a standard mortgage valuation.
A fee of £499.00 is payable on completion. This fee can be added to the loan (subject to LTV limits).
Mortgage Exit Administration Fee /Additional Fees
£120.00 inclusive of £35.00 Deeds Release Fee and £85.00 Sealing Fee. Additional administration fees may apply during the life of your mortgage. Details of these can be found in the Tariff of Charges leaflet.
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.