95% Residential variable for 2 years

Buying your own home is one of the biggest financial decisions you’ll ever make. We understand no two borrowers are the same which is why we offer a flexible approach to mortgage criteria with manual underwriting. We also offer a Joint Borrower Sole Proprietor option, which may be useful if affordability is tight, as we take into account parent’s income when assessing the mortgage application, without them becoming a legal owner of the property. Give our mortgage team a call to chat about your individual situation.

A 95% loan to value (LTV) mortgage allows you to borrow up to 95% of your property value or the purchase price, whichever is lower – this means that you only need to contribute a minimum 5% deposit.

95% mortgages are only available on our residential product range if you’re purchasing a property with a loan size of up to £500,000. The maximum amount we will lend will depend on your individual financial situation and other circumstances.

We will purchase additional security in the form of an insurance policy which protects us and not you in the event that we suffer a loss on the possession and sale of the property. The premium for this policy is included in the rate we charge for the mortgage.

The mortgages listed below move on to our Standard Variable Rate, 5.60% (variable), after the initial rate period. Our SVR is increasing to 5.75% (variable) from 1st July 2022.

There may be a limit on how low your interest rate can fall. This is called an ‘interest rate floor’. The interest rate floor applicable to your loan will be specified in your loan documentation.

Initial rate i	Discount from SVR i	Overall cost for comparison i	Max % LTV i	Payment type i
3.69%	1.91%	5.5% APRC	95%	Repayment only
See example
Representative example: A mortgage of £200,000.00 taken out for a period of 30 years on a repayment basis. Monthly instalments: £920.84 per month for 23 months, followed by £1,141.09 per month for 336 months. Total amount payable: £405,969.56. Total amount of credit: £200,000.00. The total amount payable includes valuation fee £285, product fee £999 and closing fee £100. The overall cost for comparison is 5.5% representative APRC. This example is based on our 95% Residential variable for 2 years product. It is based on our current Standard Variable Rate of 5.60%, with fees not added to the mortgage. Please ask for a personalised illustration for your own particular requirements.

Monthly payments calculator

Use the calculator to find out what your monthly payments might be based on the mortgage product and the type and term of your borrowing.

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Mortgage details

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This is the maximum amount based on the information you provided. Your mortgage adviser will take you through the application process and will calculate the amount you can afford to borrow based on your income after the deduction of those expenses and commitments. Further restrictions may apply for specialist products.

Key features
- Availability – Purchase up to 95% Loan To Value (LTV). Minimum deposit of 5% required. LTV for new build is restricted to 90% for houses and 85% for flats.
- Flexibility – Overpayments up to 20% of the capital balance as at 1st January are allowed in each calendar year without penalty.
- Portable.
Early repayment
If you repay your mortgage early, or make an overpayment, you may have to pay an early repayment charge.
For full repayment, you will pay 3% of the outstanding balance in year 1, 2% in year 2, plus a Closing Administration Fee (currently £100).
For overpayments, you will pay 3% on any amount exceeding your 20% limit in year 1, and 2% in year 2.
Product fees
- Valuation fee.
- Product fee £999

Lending criteria

Residential Lending Criteria and Information

Loan:	Size: Minimum £50,000 Maximum £500,000 Term: Minimum 5 years, Maximum 40 years.
Property:	Minimum Value: £100,000. Available for property in England, Wales and mainland Scotland. We are unable to offer a Right To Buy mortgage in mainland Scotland.
Applicant:	Age: Minimum 18, maximum is 85, subject to income in retirement.
Income:	Household income must be at least £20,000. No minimum period of employment, but must have passed probation, or have 3 years self employment history.

The amount we will lend will depend on the value of the property and a calculation based on income and expenditure. As a guide, we will take gross annual income and then apply a deduction for the annual amount paid towards any existing debts or other financial commitments. We apply the following multipliers to the amount remaining:

Income After Deductions	Sole Borrower	Joint Borrowers
£20,000-£50,000	4.25x	4.25x
Over £50,001	4.5x	4.5x

These multiples are for guidance only and do not guarantee that we will lend the amount indicated. We will carry out a full assessment of your income and expenditure to ensure that you can afford your mortgage both now and in the future.

Underwriting:	We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for your case will depend on your circumstances and our assessment of the risk.

Proc fee
We will pay a gross procuration fee of 0.35% on all introduced business. The fee is usually paid within five working days following completion. Procuration Fees may vary for our recognised Clubs & Packagers.
Useful stuff
Mortgage Insurance
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Tariff of Mortgage Fees
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Mortgage Conditions
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