Cookies on the Bucks Building Society website

We use cookies to help provide you with the best possible online experience. By using this site, you agree that we may store and access cookies on your device. Click here to find out more.

2.49% Retirement Interest Only 3 year discount [RI08]

Follow on rate is our SVR, currently 4.74%
the overall cost for comparison is 4.4% APRC

Back

A Retirement Interest Only 3 year discount up to 60% LTV for remortgages and home purchases.

There is a collar of 2.49% 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.

  • Min age 55
  • No ERC
  • Limited tranche availability

A Retirement Interest Only 3 year discount up to 60% LTV for remortgages and home purchases.

There is a collar of 2.49% 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.

  • Valuation Type
    Physical valuation required
  • Initial Rate, a discount of 2.25% from our SVR for 3 years
    2.49% variable, but which will not go below a floor of 2.49% 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
    4.4% APRC
  • Maximum Loan to Value
    60% including fees
  • Application Fee
    none
  • Product fee - may be added to the loan.
    £999
  • Early Redemption charge
    none
  • Min age 55
  • No ERC
  • Limited tranche availability

Representative Example

A mortgage of £212,950 payable over 23 years initially at a discount of 2.25% from our Standard Variable Rate, currently 4.74%, giving a pay rate of 2.49% for 3 years and then on our Standard Variable Rate, currently 4.74%, for the remaining 20 years would require 36 payments of £444 and 240 payments of £845.20.

The total amount payable would be £433,464 made up of the loan amount plus interest (£218,832),  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 4.4% APRC representative

Further Information

Fees

  • There is no application fee.
  • Product fee £999. 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 fees are not based on a set scale and solicitors must be approved by Buckinghamshire Building Society.
  • Proc fees are 0.38% up to a maximum of £4,000.

Other charges may be made in respect of mortgage services. See our Fees Guide for details.

Acceptable Credit Criteria

This product accepts our standard credit criteria click here for details

Early Repayment Charge (ERC)

There are no Early Repayment Charges with this product.

Overpayments

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

Interest only is available only up to 60% LTV. Payments must be made monthly by direct debit. 

Proof of Income

  • Employed applicants must have 3 months with current employer.
  • Last 3 months bank statements.
  • Completed Budget Planner.
  • Last P60 and 3 months payslips for all employed applicants. Last 2 years accounts or SA302s for all self-employed applicants.
  • Certified photographic proof of identity.
We will carry out electronic verification to prove the applicant’s identity, but we may also ask for documentary 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 55 for all applicants. There is no maximum age. Cases are considered on individual circumstances.

Loan Size

Minimum loan size £25,000.
Maximum loan size £750,000 up to 60% loan to value

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

This product is portable, meaning that if the applicant moves home they can take it with them, 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.

New Build

60% LTV up to maximum of £500,000 applies to new build houses outside the M25 (London area). Houses in London and all flats have a maximum LTV of 60% up to £750,000. 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.