3 year discount rate holiday home

Who's the product for?

If you’re looking for a mortgage on a Holiday Home, then we can help.

You must be owner occupier of your main residence and this cannot be the same property as the Holiday Home.

The property should be intended for your own use and we allow you the ability to short term let, including on an Air b’n’b basis at times when you do not occupy the property.

The sole purpose of the property cannot be to permanently let the property. We will not accept applications on a ‘Holiday Let’ basis.

The Holiday Home must not be within ‘close’ proximity of your main residence.

We assess affordability on a residential basis, therefore the loan amount available will be dependent upon your employment, income and expenditure details. We can consider regular rental/short term letting income if you have received this for at least two years and it is evidenced on your Self-Assessment Tax Returns.

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.

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

Early Repayment Charges apply during the product term. Up to 10% of the original mortgage amount can be overpaid each year without charge, however, if the mortgage is redeemed or switched to another product during the product term, then the full amount of the Early Repayment Charge will apply.

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 of 2.74% (equal to a 2.20% discount from our SVR) for 3 years and then our SVR, currently 4.94% for the remaining term would require an initial payment of £667.65 followed by 33 monthly payments of £658.53 and 206 monthly payments of £779.47.

The total amount payable would be £183,969.96 made up of the mortgage amount plus interest (£62,394.96) with 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.