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2.39% Local Retirement 3 year discount [RE20]

Follow on rate is our SVR, currently 4.74%
the overall cost for comparison is 4.2% APRC

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Our exclusive Local Retirement 3 year discount is available to Intermediaries who are based within Buckinghamshire to use with their clients across England and Wales.

For borrowers who are in retirement or will be in retirement during the lifetime of the mortgage.

There is a collar of 2.39% on this product which means the rate during the discount period will not go below that rate.

This product should be used for all properties in England and Wales. If there are local difficulties getting a valuation it may be possible to switch to an AVM desktop valuation product subject to the lower LTVs offered by this product.

  • No max age
  • Pension income accepted
  • Self employed accepted

Our exclusive Local Retirement 3 year discount is available to Intermediaries who are based within Buckinghamshire to use with their clients across England and Wales.

For borrowers who are in retirement or will be in retirement during the lifetime of the mortgage.

There is a collar of 2.39% on this product which means the rate during the discount period will not go below that rate.

This product should be used for all properties in England and Wales. If there are local difficulties getting a valuation it may be possible to switch to an AVM desktop valuation product subject to the lower LTVs offered by this product.

  • Initial Rate, a discount of 2.35% from our SVR for 3 years
    2.39% variable, but which will not go below a floor of 2.39% during this period.
  • Followed by our Standard Variable Rate (SVR) for the rest of the term
    4.74% variable
  • The overall cost for comparison is
    4.2% APRC
  • Maximum Loan to Value
    75% including fees
  • Application Fee
    none
  • Product fee - may be added to the loan.
    £499
  • Early Redemption charge
    Charges will apply to any lump sum or full redemption paid over 10% of the capital balance
    1.50% in year 1
    1.00% in year 2
    0.50% in year 3
  • Valuation Type
    Physical valuation required
  • No max age
  • Pension income accepted
  • Self employed accepted

Representative Example

A mortgage of £212,950 payable over 23 years initially at a discount of 2.35% from our Standard Variable Rate, currently 4.74%, giving a pay rate of 2.39% for 3 years and then on our Standard Variable Rate, currently 4.74%, for the remaining 20 years would require 36 payments of £1,006.17 and 240 payments of £1,238.49.

The total amount payable would be £334,117.72 made up of the loan amount plus interest (£119,985.72), valuation fee (£410), legal fees (£148), an exit fee (£100), a product fee (£999) and a funds transfer fee (£25).

The overall cost for comparison is 4.2% APRC representative

Further Information

Fees

  • There is no upfront application fee to pay.
  • Product fee £499. This may be added to the loan subject to the maximum LTV.
  • Valuation fees are payable on a set scale as detailed in the separate Fees Guide.
  • Solicitors and licensed conveyancers fees are not based on a set scale and solicitors must be approved by the Society.
  • Proc fees are 0.38% capped at £4,000.

Other charges may be made for mortgage services.

Acceptable Credit Criteria

This product accepts our standard credit criteria click here for details

Early Repayment Charge (ERC)

Early Repayment Charges are payable on any lump sum or full redemption repaid over 10% of the capital balance as follows.

  • 1.50% in year 1
  • 1.00% in year 2
  • 0.50% in year 3

Overpayments

During the early repayment charge period lump sum overpayments up to 10% of the capital balance per annum may be made without attracting an early repayment charge. Should the total of lump sum overpayments exceed 10% within this period, the excess will attract an early repayment charge.

Once the early repayment charge period has ended overpayments can be made at any time.
If an overpayment of £500 or more is made, we will recalculate the monthly payment the following month.

Affordability

The amount we lend will be based on our assessment of affordability. Income multiple cap is 4.5 x first income plus 3.5 x second income or 4 x the joint income.

Repayment

These mortgages are available on a capital and interest repayment basis or interest only. Payments must be made monthly by direct debit.

Proof of Income

  • Last 3 months bank statements.
  • Completed Budget Planner.
  • Last P60 and 3 months payslips for all employed applicants.
  • Last 2 years accounts or SA302 for all self employed applicants.
  • Proof of pension income in retirement.
  • Certified photographic proof of identity.

We will also carry out electronic verification to prove the applicant's identity, but we may also ask for further evidence of identity. This can include the applicant's latest mortgage statement, certified proof of residency or other loan or card statements.

References may be taken up and credit searches will be made. Cases may be declined due to previous adverse credit or information that is not disclosed on the application form.

Age Limits

The minimum age is 18 for all applicants. There is no maximum age. Applicants can be currently employed, moving into retirement during the term of the loan, or already retired and reliant on pension income.

Loan Size

Minimum loan size £25,000.
Maximum loan size £1,000,000 up to 75% LTV
Other restrictions may apply in some cases.

Mortgage Term

The maximum mortgage term is 40 years dependent on individual circumstances.

Insurance

We recommend that the applicant has buildings insurance on the property. It is not a requirement to buy any insurance through Buckinghamshire Building Society.

Portability

These products are portable, subject to our lending criteria at the time.

Property type

Standard construction houses or flats. For leasehold properties the Society requires a minimum unexpired period of 85 years at the time of purchase and at least 55 years unexpired lease remaining after the expected redemption date. Flats over 4 storeys may be considered on an individual basis but are not acceptable if they are local authority or ex-local authority. 

For new build properties the Society requires a minimum lease term of 125 years, a maximum starting ground rent of 0.1% of the property value and no unreasonable ground rent escalators or other event fees. 

Interest

Interest is calculated daily on the balance outstanding and added to the account the following month.