Existing Retirement Interest-Only borrowers who require additional funds.
5.59% variable, which includes a 2.51% discount from our Standard Variable Rate for 5 years.
Our Standard Variable Rate* for the remainder of the term, currently 8.10%.
7.4% APRC
Arrangement fee – £150 (payable on completion, can be added to the loan)
A valuation fee may be charged. The amount will be dependent on the property value
None.
No early repayment charges apply.
Further Advance
Interest-Only
50% - including the current outstanding mortgage.
Minimum £5,000 – Maximum £750,000
The total loan including the existing mortgage may not exceed £750,000.
This mortgage does not have a specified mortgage term. We will only require full repayment within 6 months of when the property is permanently vacated by the borrower (or final surviving borrower, if in joint names), due to death, moving to another property, or entering sheltered accommodation or long-term care.
This product is portable and can be transferred from the existing property to a new property.
The interest rate for this mortgage has a ‘floor’, which means that it will never fall below 2.49% during the discount period.
If you add the arrangement fee to the loan, then interest will be charged on it resulting in a greater amount payable over the term of the mortgage.
Property must be in England and Wales with a value of £140,000 or more.
Not permitted within 6 months of completion of the original mortgage.
Mortgages are subject to underwriting.
This is a worked example of repayments specifically relating to the further advance part only of the loan. This information is to help you understand the typical cost of this mortgage and is not representative of your personal circumstances.
A mortgage of £27,571.00, payable over 15 years, on an interest-only repayment basis, with an initial payable rate of 5.59%, which includes a 2.51% discount from our Standard Variable Rate (SVR) for 5 years and then on our SVR, currently 8.10%, for the remaining 10 years. The initial term would require 60 monthly payments of £128.43, followed by 120 monthly payments of £186.10.
The total amount payable would be £58,243.80, made up of the loan amount (£27,571.00), plus interest (£30,037.80), Additional Borrowing Arrangement Fee (£150) and a Standard Valuation Fee (£485).
The overall cost for comparison is 7.4% APRC.
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