Initial Rate

3.95% which includes a 1.25% discount from our Standard Variable Rate for 5 years followed by our Standard Variable Rate for the remainder of the term, currently 5.20% The interest rate charged is “floored” which means that whereas it may increase, it will never fall below 3.95%.

Incentives

This mortgage product is portable to a new residential mortgage on a different property when the new mortgage is taken out simultaneously with the repayment of the existing mortgage.

 
You would need to meet our credit and affordability requirements for the new mortgage, the new property would need to be acceptable to us, and approval of a new mortgage would be subject to our prevailing Lending Policy.

Early Repayment Charge

No early repayment charges apply to this mortgage.

Fees

£799 - This fee can be added to the loan on completion as long as the loan to value does not exceed 80% as a result. This will result in interest being charged on it making the overall fee greater over the term of the mortgage.

Eligibility

Lending restricted to England and Wales.

Parental joint borrower required.
 
Youngest borrower (student) to be <=30 years old at application.
 
If LTV is over 80% then additional cash security from a parent is required 

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Representative Example

A mortgage of £138,200 payable over 15 years on an interest-only repayment basis with an initial rate of 3.95% which includes a 1.25% discount from our Standard Variable Rate for 5 years and then on our Standard Variable Rate, currently 5.20% for the remaining 10 years. The first 5 years would require 60 monthly payments of £454.91 followed by 120 monthly payments of £598.87. 

 
The total amount payable would be £238,783.00 made up of the loan amount plus interest (£99.159.00), Arrangement Fee (£799) Standard Valuation Fee (£205), Solicitor Fee for the purchase (£250), Funds Transfer Fee (£15) and a Mortgage Exit Fee (£155).
 
The overall cost for comparison is 4.9% APRC representative.
Vernon Building Society
19 St Petersgate
Stockport
SK1 1HF

Tel: 0161 429 6262
Email: info@thevernon.co.uk

Telephone calls are recorded and may be monitored for regulatory and training purposes to help maintain service quality.

*The 'AER' stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Vernon Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (registration number 195475).  You can check this on the Financial Services Register. We are also a participant of the Financial Services Compensation Scheme (FSCS). Details of the scheme can be obtained from www.fscs.org.uk

Telephone calls are recorded and may be monitored for regulatory and training purposes to help maintain service quality.

For independent information about financial products and services visit  www.moneyadviceservice.org.uk