Retention Only Fixed Rate and Discount Mortgage – 5.29% Fixed for 2 Years then Standard Variable Rate (SVR) less 2.00% for 3 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 Fixed Rate schemes means that the interest rate is set at a rate for a specific initial scheme period. 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 8.19%) for a specific initial scheme period. The initial scheme period for this product is 5 years of which the initial 2 year period will be a fixed rate of 5.29% and then a discount of 2.00% applies in years 3, 4 and 5 meaning you would pay a rate of 6.19% (8.19% – 2.00% discount). However, if the SVR rate increases you would have a higher interest rate than the discount rate quoted above and your monthly repayments would increase. Conversely, if the SVR rate decreased, you may have a lower interest rate than the discount 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 7.4% 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%
• The product switch must take place within 30 days of the offer being made
• 95% 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 looking to switch an existing mortgage to this product and to those on the Society’s Self-build product once the property build is completed
• Any Early Repayment Charge (ERC) due on the current product will be waived provided there is no more than six months before the ERC period ends. If the ERC period on the current product has more than six months left then we will waive 50% of that ERC

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 95%. 75% may be on Interest Only if there is a credible repayment strategy in place. The remaining amount must be on a Capital and Interest (repayment) basis
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
6. Higher Lending Charge, if applicable, may be applied to the mortgage with the cost met by esbs