|Maximum Loan to Value (LTV)||95% of the Discounted Purchase Price|
|Initial Interest Rate||2.59% (3.15% discount from our Standard Variable Rate for 2 years. The discount is subject to a minimum interest rate “floor” of 2.00%).|
|Followed by our Standard Variable Rate thereafter, currently||5.74% (The Society’s Standard Variable Rate is set by its Board of Directors).|
|The Overall Cost for Comparison||5.4% APRC|
|Age||Minimum – 18 Years
Maximum – 67 Years
|Term||Minimum – 2 Years
Maximum – 40 Years
|Maximum Loan||£1,000,000 (subject to LTV)|
This product is exclusively for applicants who qualify for the Discount Market Scheme. (see details below)
Not available to customers who meet the Credit Renew criteria and not available for applicants who will be aged 70 or over during the mortgage term.
The Discount Market Scheme/Sale (DMS) is a low cost home ownership product where a new build property is purchased at a discounted price. The scheme is intended to help low and middle earners get onto the property ladder when they would otherwise struggle to buy a home on the open market by allowing the purchaser to own 100% of the property but at a reduced price. The discount will remain with the property throughout all subsequent sales and the property can only be sold to a person who fits the eligibility criteria.
Not all councils offer the scheme. Councils who do run this scheme set the eligibility criteria and this can vary between areas. Typically, you cannot have an interest in another property, you must usually have a local connection to the area the home is in and there is typically a household earnings threshold. For more details speak to your mortgage adviser and/or contact the local council in the area you would like to buy a home in to enquire about whether they offer the Discounted Market Scheme and their specific eligibility criteria.
The following multiples apply:
For 1 or 2 Applicants Up to 4.49 x Total Income
For 3 or 4 Applicants Up to 3.25 x Total Income
Our decision to lend will depend on whether the loan is affordable, which we will determine from an assessment of your income and other financial commitments, alongside the impact of future interest rate increases. To get an idea of how much you may be able to afford please speak to your mortgage advisor.
|Cashback||£250.00 for properties completing with an EPC rating of A or B. (Cashback to be paid once the Society has been provided with a copy of the EPC certificate showing a rating of A or B, no later than 3 months following completion.)|
|Application Fee||There is no application fee payable for this this product|
|Scheme Fee||£599.00 (can be added to the loan, subject to LTV, or paid on completion. Fees added to the loan will accrue interest. Further details are available on request).|
|Mortgage Exit Administration Fee||£75.00 (paid on redemption).|
|Valuation Fee||Paid directly to valuer by the applicant – see Valuation Fee Scale for details.
A standard mortgage valuation is required on all properties.
|Procuration Fee||A Procuration fee will be paid to the Introducer by the Society upon completion of the mortgage. Please refer to your Introducer for details.|
|Early Repayment Charge||3.15% of the redemption balance for 2 years|
|Overpayments||The Society will allow overpayments of up to 10% of the capital balance per annum without invoking an early repayment charge.|
|Portability||You can keep this mortgage should you move to a new property. This mortgage is portable subject to your status meeting our criteria.|
|Insurance||Buildings insurance is compulsory in all instances.|
|Representative Example:||The following is a representative example based on a mortgage of £157,152.00 payable over 25 years initially on a discounted variable rate of 2.59% for 2 years followed by our Standard Variable Rate of 5.74%. In this example you would make an initial payment of £834.86 then 23 monthly payments of £712.20 followed by 276 monthly payments of £967.90
The total amount payable would be £285,583.86 made up of the loan amount plus interest of £127,203.86 and the following fees, a Scheme Fee (£599.00), a Chaps/Telegraphic Transfer fee (£25.00), a Valuation Fee (£175.00), Legal Fees (£354.00) and a Mortgage Exit Administration Fee (£75.00).
The overall cost for comparison is 5.4% APRC representative.
Note: What you will pay may vary from this and will depend on your personal circumstances.
This is a limited issue and the Society reserves the right to withdraw this scheme without notice at any time.