Buying your own home is the biggest investment you are likely to make. OK, we know it’s a cliché, but it’s still true. Our residential mortgages are designed to help you make that investment as easily as possible.

The minimum you can borrow is £25,000, with a maximum loan of £1million per property. We will work out the exact amount we can lend you based on your income and how much you can afford to repay each month. The maximum amount we can lend is 75% of the property’s value.

This page outlines the features of our residential mortgage. Check out the
product section to see our current products and interest rates.

Fees and charges

The following fees and charges may apply to this product. You can find the current amounts of these charges on our tariff sheet.

  • Valuation fee
  • Administration fee
  • Product fee for promotional pricing (ie if there is a discounted or fixed rate period)
  • Early repayment fee for promotional pricing
  • Funds release fee
  • Redemption administration charge

About you

You must be at least 18 years old to take out this mortgage, and be no more than 70 at the end of the loan term.

If the mortgage term extends beyond your retirement, you must make arrangements to continue to make your monthly payments up to the maximum age of 70.

You can be employed or self-employed and we welcome first time buyers. Up to four people can apply to buy a property together, but we can only take two incomes into account when working out how much you can borrow.

You must have a good credit history. In particular, we cannot usually accept applicants with outstanding defaults or CCJs.

About the loan

You can take out this loan to buy or remortgage a residential property to be used as your main residence.

If a remortgage, you must have owned the property for at least 12 months. You can remortgage to raise capital for any legal purpose.

Repayments

The minimum term for this mortgage is five years and the maximum is 25 years. Payment is monthly in arrears, by direct debit.

Repayment methods available are:

  • Capital and interest repayment
  • Interest only with an investment vehicle
  • Combination of the above.

An interest only loan must have an associated investment vehicle. You cannot take out an interest only loan if the only way the capital will be paid is when the property is sold.

More information on repayment methods is in our jargon buster.

Portability

The product is fully portable: even during any initial special deal, the remaining benefits can be transferred to the new mortgage, subject to current lending criteria at the time of any move.

We don’t make an early repayment charge but if you have borrowed some extra money, any special rate will not apply to it.

About the property

We only lend on property in England and Wales. The property can be freehold or leasehold. If it is leasehold, the unexpired portion of the lease must extend at least 50 years beyond the end of the mortgage term. We require a first legal charge on the property: that is, if you fail to maintain the agreement, we may repossess the property.

We will accept most common types of property construction except prefabricated or mobile homes. Flats in blocks must be of modern construction and no more than four stories (twelve in London boroughs, provided they have a lift). We will lend on flats above commercial premises.

Insurance

The property must be adequately insured to cover the full re-instatement value; that is the cost of fully rebuilding the property. The value insured must be linked to the House Rebuilding Cost Index prepared by the Royal Institution of Chartered Surveyors.

Valuation

We will arrange a valuation through our valuer panel. The valuer will inspect the property and provide a written report to us. The minimum acceptable property value is £50,000.

Further lending

We can lend you additional funds, provided that your application meets all the criteria above. The minimum available further loan is £5,000.

If the loan is up to £25,000, and where the new combined loan does not exceed 60% LTV, we can accept a desktop valuation.

Over £25,000 or if the new combined loan using current indexed valuation is greater than 60%, we will need to obtain a full valuation report.

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