Initial Rate

4.09% which includes a 1.11% 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 4.09%.


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.


£899 - 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.


Lending restricted to England and Wales
Parental joint borrower required 
Youngest borrower (student) to be <=30 years old
If over 80% then an additional legal charge over parents’ property is required. 
If a charge over property is provided then this must be equivalent to the amount of the loan that exceeds 75% of the value of the property being purchased.

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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 4.09% which includes a 1.11% 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 £471.03 followed by 120 monthly payments of £598.87.

The total amount payable would be £239,850.20 made up of the loan amount plus interest (£100,126.20), Arrangement Fee (£899) 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

Tel: 0161 429 6262

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.


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

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

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