Vernon Building Society

Initial Rate

4.70% which includes a 0.50% discount from our standard variable rate for 5 years followed by our standard variable rate for the remainder of the term, currently 5.20%.

Incentives

Early Repayment Charge

No early repayment charges apply to this mortgage.

Fees

An arrangement fee of £499 applies where loan to value is less than 80% or where additional security is in the form of cash.

An arrangement fee of £899 applies where loan to value is over 80% and additional security is a first or second legal charge over the parents’ house.

This fee can be added to the loan on completion as long as the loan to value does not exceed 100% as a result. This will result in interest being charged on it making the overall fee greater over the term of the mortgage.

A valuation fee is payable. This amount varies depending upon the value of the property. Click here for our latest valuation fee scale.

For a comprehensive list of other fees and charges that may apply to you as a mortgage customer, click here.

Eligibility

Minimum age of student: 18

Maximum age of student at application: 29

Maximum age of parents at maturity: The earlier of retirement age or 75

Minimum term: 5 years, maximum 25 years

Minimum loan size: £125,000

Maximum loan size: £300,000

Maximum property value: £300,000

Minimum property value: £125,000

Property location: England & Wales (must be within 10 miles of university campus)

For more information about eligibility for this product please refer to our Frequently Asked Questions and Important Information for Borrowers documents.

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Representative Example

A mortgage of £170,000 payable over 25 years on an initial rate of 4.70% which includes a 0.50% discount from our standard variable rate for 5 years followed by our standard variable rate, currently 5.20%, for the remaining 20 years would require 60 monthly payments of £665.83 and 240 monthly payments of £736.67.

The total amount payable would be £388,619.60 made up of the loan amount plus interest (£216,850.60), arrangement fee (£899), standard valuation fee (£205), Solicitors fee for the purchase (£250), Solicitor fee for collateral security (£245), funds transfer fee (£15) and a Mortgage Exit Fee (£155).

The overall cost for comparison is 5.2% APRC representative.