2 year discount shared ownership 90% LTV [RSD007]
Discounted until 31/01/2020.
Early Repayment Charges apply.
This product may be withdrawn at any time.
Product key features
Product related fees
There is an arrangement fee of £999. This fee can be paid up front by deducting the fee from the mortgage amount or added to the amount borrowed.
If your clients choose to add the fee to the mortgage they will pay interest on the fee at the same rate as the mortgage.
Valuation fee contribution: We will give £275 towards the cost of one standard mortgage valuation on the purchase property.
Fees assisted legals: We will assist with your clients standard legal fees if they use our solicitors. If your client chooses to use their own solicitors we will provide them with a cashback of £150. Our solicitors will only act on our behalf and therefore will not provide your client with independent advice regarding the mortgage transaction. If your client is likely to be liable for any non-standard legal fees we will advise you of this.
There is a minimum mortgage amount of £50,000.
This product also has a maximum mortgage amount of £250,000.
There is a minimum property valuation of £75,000 which increases to £250,000 for properties located within the M25 corridor.
The maximum loan to value available on this product is 90% of the share of the property.
The mortgaged property
Shared ownership products are available up to 90% loan to value on both new build houses and apartments of no more than five storeys. Your client will be able to borrow up to 90% of the value of the share of the property you are looking to purchase.
There is a minimum property share of 25% and a maximum property share of 75%.
Applications can only be considered where the Housing Association allows additional borrowing, or 'staircasing', up to 100% of the property value.
There is a minimum property value amount of £100,000.
Interest rate floor
Your clients interest rate is discounted from our Standard Variable Rate and cannot fall below 2.79%.
Mortgage repayment terms
Your client can repay their mortgage over a minimum of 5 years and a maximum of 35 years.
Early Repayment Charges
Up to 10% of the original mortgage amount can be overpaid each year without charge. If the mortgage is redeemed or switched to another product during the discount rate product term then the full amount of the Early Repayment Charge will apply.
The Early Repayment Charge will be:
- 3% of the amount repaid until 31/01/2018; and
- 2% of the amount repaid until 31/01/2019; and
- 1% of the amount repaid until 31/01/2020.
Happy to help you...
- Discuss your decision in principle
- Process your new decision in principle
- Explain our lending criteria
- Help you understand our affordability rules
Your home may be repossessed if you do not keep up repayments on your mortgage.