Term Discount

Our Buy for University Term Discount Mortgage offers a discount of 0.50% off our standard variable rate, currently 5.34%, for the term of the mortgage.  The interest rate charged won't fall below 2%.

This product is available to applicants who are University/college students in tertiary education, with at least 1 full academic year remaining of the course on completion of the mortgage, assisted by a family member to purchase accomodation for their own use in the city/town of study. 

Initial rate Overall cost for
comparison
Max % LTV Completion
fee
Representative
Example
4.84% 5.2% APRC 100% £999 View

Representative example

A Mortgage of  £155,522.00, payable over 6 years and 10 months (82 months) on a discounted rate for the term of the mortgage with a pay rate of 4.84% would require 82 monthly payments of £627.27. This is based on an interest-only repayment method. The total amount payable would be £209,046.23 made up of the loan amount plus interest (£52,070.23) and a £999.00 completion fee, £30.00 CHAPS fee, £105.00 legal fees, £200.00 valuation fee and £120.00 mortgage exit administration fee. The overall cost for comparison is 5.2% representative APRC.

Key Features

Advance        

Minimum £90,000: Maximum £400,000

Loan to Value (LTV)

Maximum 100%  

Term              

Minimum 2 years:  Maximum 7 years

Availability

This product is available to applicants who are University/college students in tertiary education, with at least 1 full academic year remaining of the course on completion of the mortgage, assisted by a family member to purchase accomodation for their own use in the city/town of study, and;

  • Will need a guarantor by way of a parent, step-parent or grandparent to support their ability to meet affordability criteria and maintain their mortgage repayment commitments.

This product is only available to student applicants 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.  The Society may consider a combined option of part legal charge* and part cash deposit in an Assisted Purchase Deposit Guarantee Account.

Both the property to be purchased and, where applicable, the family member's residential property on which a legal charge* is to be placed, must be in mainland England or Wales.

All applications are subject to the Society’s general lending criteria, property value and satisfactory status enquiries. This product is a limited edition and can't be guaranteed until an application has been received.

Portability

This mortgage product is not portable.

Important Information

The interest rate charged won't fall below 2%.

*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.

You can find details of the Assisted Purchase Deposit Guarantee Account here.

Early Repayment Charge Fees How to apply