• 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 8.39%) 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 1.30% meaning you would pay a rate of 7.09% (8.39% – 1.30% 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 8.2% APRC representative*
  • Arrangement Fee of £999
  • There is a floor of 2.5% on this mortgage which means that the rate of interest charged will not fall below 2.5%
  • Maximum loan £250,000
  • 50% maximum loan to value
  • Capital and interest only (not interest only)
  • There is an Early Repayment Charge if the mortgage is redeemed or rearranged in the first 3 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 year 3
  • Specific conditions for this scheme:
    – Only 50% of income from the business carried out in the property can be used. Other earned income will be assessed as usual
    – Only a single room may be used for business purposes
    – No structural alterations or adaptations are permitted to accommodate the business use
    – No employees can work on the premises (except close relatives)
    – Any external advertising of its use is discreet and has relevant Local Authority approval, and the Local Authority to confirm no change of use required
    – No restrictive covenants on the property preventing business use
    – The property’s buildings insurer is aware of and has agreed the incidental use
    – Relevant public liability insurance is in place
    – Business usage is for our borrower and does not pass with the title to a subsequent owner
*Representative example:
Loan Amount£150,000
Arrangement Fee (added to loan)£999
Electronic Transfer of Funds (added to loan)£30
Total Amount of Credit£151,029
Term25 years
Property Value£300,000
Valuation Fee (including £25 valuation administration fee)£345
Solicitors Mortgage Fees (Estimate)£150
Deeds Release Fee£50
Sealing Fee£100
1 payment at the Society’s SVR less 1.30% (currently 7.09%)£1,485.72
Followed by 59 payments at the Society’s SVR less 1.30% (currently 7.09%)£1,076.13
Followed by 240 payments at the Society’s SVR (currently 8.39%)£1,187.23
Total Amount Payable£350,557.59
The Total Amount Payable is made up of the Total Amount of Credit, other fees payable (not added to the loan), plus the interest of£198,883.59

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. There is an Arrangement Fee of £999. This can be added but interest will be charged for the remaining term of the mortgage, or the fee can be paid on or before completion and interest will not be charged


Product Code 301 – September 2023

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