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Joint Borrower Sole Proprietor & Deposit Guarantee 2 Year Discount

Home > Mortgages > Family Assist > Family Deposit > Joint Borrower Sole Proprietor & Deposit Guarantee 2 Year Discount

Our Joint Borrower Sole Proprietor & Deposit Guarantee 2 Year Discount Mortgage includes a discount of 2.09% off the Society’s standard variable mortgage interest rate, currently 5.34%, for a period of 2 years following completion of the loan and during this time cannot go below the rate of 1.75%. At the end of the 2 years the Society’s prevailing standard variable mortgage interest rate will apply. The interest rate charged cannot go below 2%.

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Our mortgage calculator is designed to show you how much you could potentially borrow and how much your monthly payments would be. The amount is based solely on your income without deducting household expenses and financial commitments. Your mortgage adviser will take you through the application process and will calculate the amount you can afford to borrow based on your income after the deduction of those expenses and commitments. Further restrictions may apply for specialist products.

Gross annual income





LTV Amount





Payment Terms





Product
Initial rate
Overall cost
for comparison
Max % LTV
Completion Fee
Mortgage Repayment
 
Joint Borrower Sole Proprietor & Deposit Guarantee 2 Year Discount
Representative Example
3.25%
5.1% APRC
100%
£499
Product
Joint Borrower Sole Proprietor & Deposit Guarantee 2 Year Discount
Representative Example
Initial rate
3.25%
Overall cost for comparison
5.1% APRC
Max% LTV
100%
Completion Fee
£499

Advance

Minimum £90,000: Maximum £400,000

Loan to Value (LTV)

Maximum 100% (subject to Society lending policy)

Term

Minimum 2 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;

  • where a cash security is deposited in an Assisted Purchase Deposit Guarantee Account or
  • where a family member has agreed to accept a legal charge* over their residential property or
  • a combination of part legal charge* and part cash deposit in an Assisted Purchase Deposit Guarantee Account.

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.

Important Information

The interest rate charged won’t fall below 1.75% during the discount period and 2% after that time.

Full Repayment

An early repayment charge equivalent to 2% of the advance amount 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%.

 

CHAPS Fee

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.

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..

Completion Fee

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.

To get in touch with our mortgage team either telephone us on 01509 631950, email at mortgages@theloughborough.co.uk or request a call back here.