
3 year discount rate holiday home
Discounted for 3 years
Early Repayment Charges apply.
This product may be withdrawn at any time.
Product key features
- Who's the product for?
- Product related fees
- Mortgage amounts
- Interest rate floor
- Mortgage repayment terms
- Early Repayment Charges
- Mortgage tariff of charges
- Representative example
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.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON 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%.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Interest rate floor
The interest rate is floored and can't fall below 2.74%.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Mortgage repayment terms
Mortgage repayment terms are allowed between 5 years and 35 years.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Mortgage tariff of charges
The mortgage tariff of charges details the various fees and charges that may apply during the term of your mortgage.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON 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.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Your holiday home mortgage toolbox
tools and guides
FAQs
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- Do you credit score mortgage applications?
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We don't operate a computer credit score system, each application is reviewed individually by a real person. At enquiry stage we will complete a credit check and once a full application is submitted we will carry out a full credit application that will leave a footprint on your credit file.
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- What types of property do you lend on?
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We will lend on most properties built using standard construction methods and materials (brick or stone walls with a tiled or slated roof). We can also consider the following property types (subject to valuation):
- Timber framed walls with brick cladding;
- Thatched roof properties;
- Grade 2 listed;
- Prefabricated reinforced concrete (PRC) repaired properties that have the benefit of a 30 year insurance backed guarantee and structural warranty.
However, we will not lend on flats and apartments in blocks above five storeys high and we will not lend on ex-local authority flats or maisonettes.
If you're unsure whether your property type fits our criteria, please contact us and a Mortgage Adviser will be happy to help. Call 0121 557 2551, visit a branch or complete our online form.
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- What are your age limits?
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The minimum age for a mortgage applicant is 18 years.
If you are employed or self-employed, standard underwriting will apply where the mortgage term does not extend beyond the state pension date of the highest earning applicant.
We can consider applications where the term will extend beyond the state pension date of the highest earner or where all applicants are already retired and in receipt of pension income however we will require additional criteria to be satisfied.
For more detail you should speak with one of our Mortgage Advisers. Please call 0121 557 2551 or visit one of our branches to book an appointment or complete our online form.
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- Can I get a mortgage if I'm self-employed or sub-contracted?
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If you are self-employed, we will need proof of trading for a minimum of two years and you must be able to provide proof of income over the same period.
We will consider long term sub-contractors on an employed basis as long as you can prove:
- you have been contracted for a minimum six months with your current contractor and two years continuous employment history within a similar industry;
- a consistent level of income each month;
We will also require your 'employer' to confirm your start date, your monthly earnings and that your services on a 'sub-contracting' basis will continue for the foreseeable future, so no fixed end date.
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Monday - Tuesday | 09:00 - 17:00 |
Wednesday | 09:30 - 17:00 |
Thursday - Friday | 09:00 - 17:00 |
Saturday | 09:00 - 12:00 |
Sunday | Closed |
We're here to help you...
- Answer your queries
- Check affordability
- Assess your options
- Help you apply
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.