3 year discount rate holiday home

Who's the product for?

If you're looking for a mortgage on a holiday home and you're planning to let it out on a short-term let basis, then we can help.

The sole purpose of the property cannot be to let out on a permanent basis. You must occupy the property at some periods during the year.

We'll even accept properties on an AirBnB basis.

Product related fees

There's an arrangement fee of £999. You can pay this up front by deducting the fee from the mortgage amount or adding it to the amount you borrow. If you add the fee to your mortgage you'll pay interest on the fee at the same rate as your mortgage.

There is a booking fee of £99 which is non-refundable, non-transferable and must be paid on application.

Mortgage amounts

There is a minimum mortgage amount of £50,000 and a maximum amount of £750,000.

The minimum property value is £75,000 which increases to £250,000 for properties located within the M25 corridor.

The maximum loan to value is 75%.

Interest rate floor

The interest rate is floored and can't fall below 2.74%.

Mortgage repayment terms

Mortgage repayment terms are allowed between 5 years and 35 years.

Early Repayment Charges

You can overpay up to 10% of the original mortgage amount each year.

Any overpayments taking you over this allowance will be subject to the full Early Repayment Charge. The Early Repayment Charge will be:

• 3% of the amount repaid during the first year;
• 2% of the amount repaid during the second year; and
• 1% of the amount repaid during the third year.

Mortgage tariff of charges

The mortgage tariff of charges details the various fees and charges that may apply during the term of your mortgage.

Representative example

A mortgage of £120,575 payable over 20 years initially on a discounted variable rate for 3 years from inception, currently 2.74% (equal to a 2.20% discount from our SVR) and then our SVR, currently 4.94% for the remaining term would require an initial payment of £667.65 followed by 34 monthly payments of £658.53 and 205 monthly payments of £778.94.

The total amount payable would be £183,839.37 made up of the mortgage amount plus interest (£62,165.37) with a booking fee of £99, an arrangement fee of £999, a mortgage valuation fee of £700, legal fees of £150, a telegraphic transfer fee of £25 and mortgage exit fees of £125.

The overall cost for comparison is 4.5% APRC representative.