Retention Only Discount Mortgage – Consent to Let - Standard Variable Rate (SVR) less 1.20% for 5 Years

Generally only available for esbs mortgage borrowers looking to switch an existing mortgage product which completed more than one year ago

• 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 7.84%) 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 1.20% meaning you would pay a rate of 6.64% (7.84% – 1.20% 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 7.6% APRC representative*
• Product Switch Fee – £195
• There is a floor of 2.5% on this mortgage which means that the rate of interest charged will not fall below 2.5%
• 70% maximum loan to value
• 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
• Available only for esbs mortgage borrowers who have been given consent to let their property on an Assured Shorthold Tenancy basis
• Any Early Repayment Charge (ERC) due on the current product will be waived
• The borrowers must provide an Assured Shorthold Tenancy with a Section 21 Notification
• Proof of buildings insurance must be provided showing consent to let the property
• The borrowers can be no more than 3 months in arrears
• No further borrowing is allowed
• If the property reverts to being your main residence and the letting ceases then you must advise us

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. Maximum loan to value 70%. This may be on Interest Only if there is a credible repayment strategy in place
5. There is a Product Switch Fee of £195. 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