A first charge will be taken over the property being purchased as security for the mortgage borrowing.
Higher Lending Charge
For lending above 80% of the property purchase price or 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 overpayments of 10% or more of the loan amount are made in any 12 month rolling period during the initial period, and depending on which mortgage your customer has, the following charges will apply:
• 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 Details of Charges leaflet for more information).
Where Early Repayment Charges apply to any of our mortgages, we may allow overpayments (normally up to 10% of the outstanding balance in any rolling 12 month period) without penalty.
Once any period where Early Repayment Charges are applicable has ended, capital reductions can be made without limit or penalty to reduce the balance of the mortgage.
We’ll need evidence that buildings insurance for the property is in place before we can release funds.
This mortgage can be transferred to a new property if the application satisfies our normal lending criteria.
Check our ‘Packaging Requirements’ for full details of documents needed for mortgage applications