Versatility – 2 Year Discounted Variable Rate – MPDV12

A mortgage of £140,000.00 payable over 33 years initially on a discounted rate of 6.89% for 2 years then on our follow-on rate of a 1.74% discount off our standard variable rate (currently 8.89%) giving a rate of 7.15% variable for the remaining 31 years would require 23 monthly payments of £897.33 and 372 monthly payments of £921.50; plus one initial interest payment of £819.25.

The total amount payable would be £365,659.84 made up of the loan amount, plus interest and fee(s) totalling £225,659.84. This includes Application Fee (£199), Legal Fees (£255), Chaps Fee (£25), Completion Fee (£800) and Redemption Administration Fee (£125).

The overall cost for comparison is 7.4% APRC representative.

A representative example is designed to help understanding of the typical cost of this mortgage. This is not an illustration and is only provided as an example.

A discounted variable rate mortgage is discounted from our Standard Variable Rate (SVR), and as a result, the initial rate will go up or down when we change our SVR and by the same amount. We choose when to change our SVR depending on a variety of factors and our SVR is not directly linked to the Bank of England Base Rate (BBR). If the interest rate goes up, we will write to borrowers in advance to inform them of the intended changes.

When borrowers come to the end of the initial rate term, we will write to them to offer them another deal and they can either choose to accept this deal, remortgage to another lender, or should they do nothing, revert onto a follow-on rate at 1.74% below our Standard Variable Rate (SVR).

The follow-on rate is also variable and may go up or down. A minimum interest rate of 3% will apply during the full term of the mortgage.

Borrowers can make overpayments between 1 January and 31 December each year during the fixed rate period of up to 10% of the original loan amount without incurring an Early Repayment Charge.

Any lump sum payments or regular overpayments received in a single calendar year, which in total exceed 10% of the original loan amount will incur an Early Repayment Charge on the amount of the excess. The Early Repayment Charge is a percentage fee of the current balance.

Any Early Repayment Charge will be waived if a new consecutive mortgage for at least the amount outstanding at the time of redemption is taken out with us. If a new mortgage for at least the amount outstanding at the time of redemption is taken out with us within 3 months of full repayment then any early repayment charge will be refunded.

Where a product includes a “basic legal fees” package for remortgages (properties in England and Wales only), via our nominated solicitor, the Society will pay the legal fees to the nominated solicitor for a simplified “fast track” process. Under this process the solicitor will be acting on behalf of the Society and not on your behalf. Normal conveyancing checks will not be made as the applicants will already live in or own the property.

If there are any additional legal requirements or costs that are not covered by this “fast track” process then the “basic legal fees” package may not be available and applicants will have to pay additional legal costs, including those incurred on behalf of the Society, to the solicitor.

Examples of these include the requirement for face to face or independent legal advice as a mortgage or product condition, changing names on title deeds, correcting title defects, postponement of charges and additional searches. Please contact us if you require more information on the circumstances where legal fees will not be covered.

A basic valuation fee is included. If you require a more detailed Homebuyers Report, this will be at an additional charge. You can find out more including the fee scale in our Mortgage Valuation Fees document.

Unless otherwise stated, our mortgage products are available for house purchase or remortgage. All our mortgage products are subject to availability and can be withdrawn at any time.

All mortgage applications are manually underwritten by our experienced underwriters and are subject to a full assessment against our lending criteria.

It is important that you take time to read and understand the mortgage product features detailed above and the information about our Residential or Buy to Let mortgages detailed in the General Information Guides.

Please contact our Intermediary Support team for further details. You can check affordability on our website and submit a DIP request or request an ESIS from our online portal. You can apply either online or through the post.