1.98% fixed rate mortgage from the Furness Building Society. £999 product fee. Maximum LTV 80%. Early Repayment Charge of 3% for the first year, 2% for the second year and 1% in the third year of incentive.
A mortgage of £160,000 payable over 25 years initially on a fixed rate for 3 years at 1.98% and then on our Mortgage Variable Rate (MVR) of 5.29% (variable) for the remaining 22 years would require 36 monthly payments of £265.72 and 264 monthly payments of £709.97.
The total amount payable would be £358,432.00 made up of the loan amount plus interest (£356,998.00), an Application fee of £999.00, a CHAPS Fee of £20.00, a Valuation fee £195.00, a Legal fee of £105.00, an Insurance Rearrangement fee of £25.00, and a Mortgage Discharge Fee of £90.00.
The overall cost for comparison is 4.70% APR representative.
Please note the example above is for a house purchase on an interest only basis.
Please note the following: our affordability calculator will assess affordability of the case purely based on the information you input
• the Society does not use an automated affordability model
• all applications are manually underwritten by our experienced underwriters
• 3 months bank statements must be supplied with the application
• the stated expenditure will be reviewed in conjunction with the bank statements and /or with statistical data as appropriate
• where the stated expenditure does not reflect that shown on the bank statements or appears otherwise unrealistic you will be asked to submit revised expenditure details
• case will be declined where affordability cannot be proven based on realistic expenditure
You are strongly recommended to thoroughly verify the stated expenditure as delays may occur or the case may be declined where the information provided is deemed inaccurate.
Residential properties of standard construction in England and Wales, in Scotland the maximum LTV is 75%, either freehold (excludes flats/apartments) or leasehold with a minimum remaining lease term of 85 years at the beginning of the mortgage and 55 years remaining at the end of the term.
The Solicitor should confirm the details of the tenure in writing to the Society prior to completion (including the term remaining on the lease and amount of ground rent payable) and ensure that the Society is adequately protected by the freehold/leasehold arrangements.
The Solicitor is to ensure prior to completion that the Society is not adversely affected by the terms of the lease and also that a covenant is included in the lease whereby the landlord agrees to serve the Society with a copy of any Notice of Breach of Covenant. In the absence of such a covenant, the Solicitor should ensure that a written notice is served on the freeholder advising him of the Society's interest and the need to notify the Society of any breach of covenant in the lease.
Where the property is a flat/apartment we will require that a suitable lease is in place. We do not normally accept the following properties:
• Freehold flats
• Ex-local authority flats
• City Centre flats
• Tower Block flats
• Flat roofed properties
• Flats over 4 storeys
• Land for rent
• Properties of non-standard construction
• Properties which fall under ‘House of Multiple Occupation’ legislation
• Commercial properties
• Student letting properties
If you are not sure whether we will consider the type of property in question, please contact Broker Liaison on 0800 22 05 68 or email email@example.com
Lending Criteria where loan exceeds 80% LTV
• Repayment basis only.
• Applicants on Voters Roll for 1 year (both applicants).
• Evidence of address history to be provided for the last three years residence (unless on Voters Roll for 3 years).
• 3 months bank statements – never exceeded overdraft limit/ no returned items.
• Excess of income over expenditure of at least £200 evidenced on the Budget Planner based on the mortgage payment calculated at the initial pay rate.
• Permanent employment 6 months with same employer (both applicants). Unencumbered deposit.
• Clean credit searches - no missed payments, defaults or CCJs etc.
• Self employed – 2 years accounts – not more than 12 months old.
The maximum amount that will be considered for debt consolidation is £30,000.
When the debt being consolidated is over £20,000 or the LTV is greater than 50% we will require a solicitor to take responsibility for repaying the debts. The Society’s remortgage package is not available for this. However we will contribute £150 towards the appointed solicitor costs.
This exclusion also includes capital raising when the purpose of the funds is to purchase another property. We would expect the acting Solicitor to ensure the funds are sent directly to the vendor or creditor. Again, the Society will contribute £150 to the legal costs.
Any queries please call Broker Liaison on 0800 22 05 68 or email firstname.lastname@example.org
Interest Only Lending Criteria
Owner - occupied residential mortgages:- Standard Repayment Strategies
Where the repayment strategy is of a traditional nature eg regular premium endowment policy or equity PEP/ISA the maximum LTV is 70%.
• The repayment strategy must have been established for at least 3 years
• Satisfactory evidence of the repayment strategy must be provided in the form of a statement/projection of the maturity value at the end of the proposed mortgage term
The applicants should confirm that the proposed repayment strategy is on track by indicating on the application form
Please note that the maximum loan size on Interest Only is £250,000
Owner - occupied residential mortgages:- “Non-standard” Repayment Strategies
Please note that the Society will consider some types of non-standard repayment strategy up to 60% LTV (i.e. those not mentioned above) but this will be on an individual referral basis. Please contact us on 0845 194 8669 or e-mail email@example.com if you wish to discuss a case.
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