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Residential Flexible Features

Please read this page along with the residential mortgages product page.

Features

Overpayments

An overpayment is a payment in addition to your normal monthly payment. You may make overpayments to your mortgage at any time but it is subject to limits during the initial product Tie-In Period. During the Tie-In Period you can make overpayments up to the level stated in the product description; the limits will generally be up to 20% of the original advance for 2 and 3 year products and 15% of the original advance for 5.

Capital repayments greater than the amounts specified can also be made but will be subject to the early repayment charge described in the product details. The overpayments will reduce your mortgage balance on a monthly basis and therefore, reduce interest costs. Subject to certain terms, you may be eligible to convert your overpayments towards reducing the term of your mortgage providing it is a Repayment loan.

Some of our flexible base rate tracker mortgage products have unlimited flexibility so that you can overpay by as much as you like, when you like.

Underpayments

An underpayment is any payment that is less than the normal monthly mortgage payment or a missed payment. You may make underpayments up to the maximum of any previously accrued overpayments (when not used to reduce the mortgage term). You need to give us one month’s notice and obtain our approval.

Payment Holidays

A payment holiday is an agreed period of time when you can take a break from making payments. You may take a payment holiday up to the maximum of any previously accrued overpayments (when not used to reduce the mortgage term). You need to give us one month’s notice and obtain our approval.

Switch to a Fix

Available on all Base Rate Tracker products. At any time during the mortgage you are eligible to transfer to any of our current fixed rate mortgages. You will not be eligible to transfer to any “Limited Edition” or “Exclusive” mortgage product. Conditions apply when choosing this option. Please ask for details.

Portability

These mortgages may be transferred to another property. If you decide to move you take your mortgage on the same terms and conditions to your new property. This feature is subject to customer qualifications and acceptable property valuation at the time a transfer is required.

Fee Free Legals

This feature is available for standard re-mortgages on properties in England and Wales. The fee free legal work relates to our legal fees and disbursements carried out by our chosen legal advisers, which fees are usually paid by you. The solicitors we choose will only act for us. They will undertake limited checks on the title to the Property to ensure we, as your mortgage lender, are protected.

You may have to pay additional fees depending on loan size and your personal circumstances. For example, Land Registry fees in excess of £100 will need to be paid by you and removing or adding someone to or from the Property and the Mortgage will not be classed as standard work.

Further detail about this service is available on request, and will be contained in your mortgage offer.

Monthly Interest

Interest is calculated on a monthly basis.

Interest Rate Changes

As the interest rates on these products are set at a certain level in relation to the Bank of England base rate, and as that rate is variable, the rate can move up as well as down during the period of the loan. If there is a change to the Bank of England base rate, your new rate will become effective seven days from the date of the base rate change. In the event the Bank of England base rate reduces during the life of the loan, the minimum variable charge rate during the life of the loan will be 3%. The annual percentage rate is 3.1% APR.

Restrictions

Early Repayment Charge

If the loan is redeemed or a transfer to an alternative product is agreed within the product Tie-In Period (detailed in the column marked ‘Early Repayment Charges and Tie-In Period’), then the full early repayment charge will be payable. The early repayment charge will be calculated as a percentage of the amount being repaid, as stated in the product description. After the Tie-In Period, products are not subject to early repayment charges and interest will then be charged up to and including the date of redemption. A Redemption Administration Charge will be payable if the loan is repaid at any time before the end of the agreed term. Please see our Mortgage Account Tariff for details.

Payback of Cashback

Some of our products have cashbacks which, in some cases, are repayable under certain circumstances. The amount of cashback repayable, if applicable, is stated in the product details.

Higher Lending Charge

You may have to pay a Higher Lending Charge when we agree to lend you a higher percentage of the value of the property. If the money we advance you is over 90% of the purchase price or the value of the property (whichever is lower) you will have to pay this fee. See our Mortgage Account Tariff which provides further details on why we make this charge.

Lending Terms

Remortgage

The property must have been owned by you for at least 6 months before you can make an application to us for a remortgage.

Types of Mortgage

These products can be made on a Repayment or Interest only basis. Loans can be repaid over a term of between 5 and 40 years.

Minimum Loan

Unless stated the minimum loan for new borrowers is £25,000.

Minimum Valuation

The minimum property valuation we will lend on is £50,000 (£75,000 in London) unless product restrictions apply.

Maximum Loan to Value (LTV)

Unless specified otherwise the maximum LTV is 85% for new customers and 90% for existing customers.

Maximum Loan & LTV (on purchase and re-mortgage)

LTV	Maximum Advance
90%*	£350,000
85%	£400,000
80%	£500,000
70%	£750,000
*members only

Income Multiples

Up to 4.25 x main income, 4.25 x main + 1 x second income or 3.50 joint income, depending on loan to value.

Important Information

Products may be withdrawn at any time. Applicants must be aged 18 or over. In all cases the property will be security for the loan.

Suitable life assurance may be required. Written quotations available on request. All loans and benefits subject to status.

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