General information – about our mortgages

We offer residential mortgages. This means the loan must be used to buy or remortgage a property that you will live in.

You don’t need to use the full loan for the property itself. You can use it for other things (subject to our lending criteria). However, you should think carefully about borrowing against your home as you could lose it if you can’t keep up the repayments.

Your property must be located in England or Wales.

All our loans will be secured by a first legal charge against your property. This allows us to recover any money you owe us if things go wrong.

Before offering any loan, we will arrange a valuation of the property. This valuation is for our use only. We need to confirm how much the property is worth.

We don’t think homeowners should have to worry about rates changing or being denied access to mortgage products in the future. That’s why all of our products have fixed interest rates for 5, 7,10 or 15 years.

Our loans come with flexibility as standard. If you decide to move home, you can take your mortgage with you, no problem. On our 5-15 year fixed rate products you also pay no exit fees if you sell the property. And if rates come down and you’d like to change your deal, that’s absolutely fine, you can switch to a new product with us at the end of your fixed period.

If you want to overpay, that’s ok too. You can overpay up 10% of the outstanding balance of your mortgage each year without early repayment fees.

We offer both repayment and interest-only mortgages.

A repayment mortgage means you will gradually pay off the amount you have borrowed, along with the interest charged, over the term of the loan. Once your payments have finished, you will have repaid your mortgage in full.

An interest-only mortgage means that you pay the interest charged to the loan each month, but don’t pay anything towards reducing the original amount you have borrowed. This means that the monthly payments are smaller, but you will need to prove you can repay the full loan amount at the end of the term.

Unlike our standard interest-only mortgages, RIO mortgages do not have a fixed term. This means you pay the interest charged to the loan each month, and the original amount you borrowed is repaid when you sell your home. This can happen when you move into long term care, pass away, or leave the property with no intention of returning to live in it.

RIO mortgages are designed to support later life homeowners who would like to stay in their own home for longer but cannot afford a standard residential remortgage. We assess the loan on an interest-only basis and don’t require evidence of being able to repay the loan at the end of the term. Early repayment charges (ERCs) apply for the first five years. This product is available to borrowers over the age of 50 up to 75% loan to value.

To help you to understand how mortgage costs work, here is an example: A mortgage of £240,000.00 payable over 35 years, initially on a 5-year fixed rate of 5.89%, followed by our Perenna Reversion Rate, currently 7.50% would require 60 payments of £1,350.77 followed by 359 payments of £1,594.07, and 1 payment of £1,591.68.  The total amount payable would be £654,924.01 made up of the loan amount plus interest of £414,909.01 and a funds transfer fee of £15. The overall cost for comparison is 7.1% APRC representative.

You may also incur fees and charges when taking out a mortgage or during the mortgage term. Details of the fees we charge are set out in our Tariff of Mortgage Charges.

You must make sure you have suitable buildings insurance in place for as long as you have the mortgage. You can buy this from an insurer of your choice, but It’s important to make sure that there is cover in place for the total cost of rebuilding the property during the mortgage term.

You must make your monthly payments in full and on time and repay everything you owe by the end of the mortgage term. If you don’t, you could lose your home.