First Time Buyer Discount Mortgage - Standard Variable Rate (SVR) less 2.25% for 5 Years

New Borrowers – We’re here to help with purchases and remortgages that need a practical, case-by-case approach, However, the advice will now need to be provided by a mortgage intermediary (also known as a mortgage broker), as we are temporarily pausing esbs direct mortgage advice for new borrowers.

This allows us to focus on supporting our existing members and their evolving needs. This is a short-term change, and we will provide updates as soon as esbs direct mortgage advice for new borrowers becomes available again.

Full details can be found here

• The Society’s discounted Standard Variable rate (SVR) mortgage schemes have their interest rate set at a specified “discount” level below our Standard Variable Rate (currently 7.64% from 1st June 2025) for a specific initial scheme period.
• The initial scheme period for this product is 5 years meaning that the discount applies over a 5 year period. In this 5 year period the discount is 2.25% meaning you would pay a rate of 5.39% (7.64% – 2.25% discount). However, if the SVR rate increases you would have a higher interest rate than the rate quoted above and your monthly repayments would increase. Conversely, if the SVR rate decreased, you may have a lower interest rate than the rates quoted above and your monthly repayments may decrease. From Year 6 onwards the rate will be at the Society’s SVR meaning the rate then changes to what the SVR is at that time
• The overall cost for comparison is 6.9% APRC representative*
• Booking Fee £125 payable upfront and non-refundable
• No Higher Lending Charge and Free standard valuation (up to £540)
• There is a floor of 2.5% on this mortgage which means that the rate of interest charged will not fall below 2.5%
• 95% maximum loan to value (LTV) Houses only. Flats/Maisonettes 75% LTV
• There is an Early Repayment Charge if the mortgage is redeemed or rearranged in the first 5 years, calculated as follows:
  • 2% of the redemption balance is payable within the first 2 years
  • 1.5% of the redemption balance is payable in years 3 and 4
  • 1% of the redemption balance is payable in year 5
• Capital and Interest (Repayment) basis only
• Available for First Time Buyers for purchase only (At least one applicant must never have owned a property before)
• Minimum mortgage amount £100,000.
• Maximum mortgage amount – £300,000 above 90% LTV, or £400,000 90% LTV and below

Your home may be repossessed if you do not keep up repayments on your mortgage

Additional information

1. The Society will require a first charge over the property

2. Capital repayments and overpayments are permitted subject to a maximum of 20% per financial year of the amount advanced or transferred capital balance. Capital repayments are subject to a minimum of £1,000 over the normal monthly payment

3. Following receipt of a regular overpayment or lump sum, the amount you owe, and so the interest you pay, is reduced immediately

4. A free standard mortgage valuation is offered subject to a maximum fee paid by the Society of £540. A mortgage valuation is for the Society’s use to ensure there is adequate security for lending