Capital raising is allowed up to 90% of the property value for reasons such as divorce settlements, deposits for other properties or home improvements.
If raising capital for debt consolidation, the maximum is 80% of the property value.
To raise funds on a property which currently has no mortgage on it or for business purposes, please speak to your Business Development Manager.
A first charge will be taken over the property being remortgaged as security for the mortgage borrowing.
Higher Lending Charge
For lending above 80% of the property valuation the Society will cover the cost of a Higher Lending Charge. All applications must fit our Lending Policy and also meet specific requirements
Early Repayment Charges
If you make overpayments of 10% or more of the loan amount in any 12 month rolling period during the initial period, and depending on which mortgage your customer has, the charges apply as follows:
- For our 3-year mortgage, the charge will be equivalent to 3% of the outstanding balance amount in year 1 and 2 and 2% in year 3.
- For our 5-year mortgage, the charge will be:
o 5% of the outstanding balance in the 1st year
o 4% of the outstanding balance in the 2nd year
o 3% of the outstanding balance in years 3 & 4
o 2% of the outstanding balance in year 5
After the initial period, the Society will not make an early repayment charge if the mortgage is on Standard Variable Rate and is repaid. However, there will be certain redemption fees that will need to be paid (see our mortgage product rates leaflet for more information).
We’ll need evidence that buildings insurance for the property is in place before we can release funds.
Check our Packaging Requirements for full details of documents needed for mortgage applications