YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Key Comparison Notes
|0.24% above the Society’s Standard Variable Rate, currently 4.75% for 2 years.||4.99%|
|Followed by a rate of 0.75% above the Society’s Standard Variable Rate for the remaining term.||5.50%|
|The overall cost comparison is:||5.7%
Self Build/Renovation Mortgage Scheme
Capital repayment mortgages or interest only (during construction phase only).
The minimum loan amount is £30,000.00.
The maximum loan amount is £300,000.00.
The maximum initial release would be 75% of the plot value. Further instalments would be released upon re-inspection by the Society’s Valuer, subject to no more than 75% of the value of the property being released at any time.
Available for self builds or renovations of properties for owner occupation only. The Society will, subject to compliance with mortgage conditions, offer an interest rate of 0.24% over the Society’s Standard Variable Rate for 2 years, making the current rate payable 4.99%. After 2 years the rate of interest payable will be 0.75% above the Society’s Standard Variable Rate, giving a rate payable of 5.50%.
The Society will require the build or renovation of the property to be completed within a 2 year period and will require three-monthly updates on the progress. Should the build be completed sooner you may be eligible to transfer your mortgage onto a discounted product within the Society’s retention range, subject to eligibility. In the event of the build project being incomplete at the end of the initial interest rate period of 2 years, the mortgage will transfer onto a rate which is 0.75% above the Society’s Standard Variable rate until the build project is complete.
The Society is to have confirmation that all necessary planning permissions/building regulation consents have been obtained in respect of the build of the property/renovation. The Society will also require the build to be supervised by a suitably qualified Architect or confirmation that an acceptable new homes warranty scheme or guarantee will be provided on completion.
The Society will require plans of the proposed works, along with detailed costings, to be submitted at the time of application.
An early repayment charge will be payable if the mortgage is redeemed during the first two years. The early repayment charge will be equivalent to 3% of the capital balance at the time of redemption.
- Application Fee – £100. Payable on application. Non-refundable
- Product Fee – £500. Payable in advance. Refundable prior to completion. Can be added to loan (subject to LTV limits) Can be deducted from advance upon completion (subject to LTV limits).
- Underwriting Fee – For loans between £275,000 and £300,000 with an LTV of <75% an underwriting fee of £500 will apply. Payable on acceptance of the mortgage offer. Can be added to loan (subject to LTV limits). Can be deducted from advance upon completion (subject to LTV limits). The fee must be paid to the Society prior to the advance monies being released. This fee is non-refundable.
- Valuation Fee – Variable. Payable on application. Not refundable once the valuation has been carried out.
- Re-inspection Fee – £55 per re-inspection. Re-inspections may be required throughout the build to confirm the loan to value is sufficient for the Society to release instalments. A maximum of 5 intalments will be permitted including the initial release. A final inspection will be required to confirm the completed value.
- Mortgage exit fee – £50.00. Payable upon redemption of the mortgage
This mortgage is not portable. If you wish to move house and require a loan, you will have to make a new application.
This product may be withdrawn without notice.
A mortgage of £131,229.00 payable over 11 years on our self-build/renovation rate for 2 years at 0.24% above the Society’s current Standard Variable Rate, making the current rate payable 4.99% (variable), and then on a rate of 0.75% above our current Standard Variable rate giving a rate payable of 5.50%, for the remaining 9 years, would require 24 monthly payments of £1,293.86 and 108 monthly payments of £1,321.64 plus one initial interest payment of £269.11.
The total amount payable would be £175,068.44 made up of the loan amount plus interest (£42,829.44), an application fee of £100.00, a product fee of £500.00, a valuation fee of £360.00 and a mortgage exit fee of £50.00.
The overall cost for comparison is 5.7% APRC representative.