A first charge will be taken over the land and property being built as security for the mortgage borrowing.
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 client 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 you to 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).
Before releasing funds, we’ll need evidence of specialist self-build insurance if the applicant intends to build a new build home, or renovate or convert of a property intended for occupation on completion
Check our packaging requirements for full details of documents needed for mortgage applications.