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2.49% Retirement Interest Only AVM 3 year discount [RI07]

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

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A Retirement Interest Only AVM 3 year discount up to 60% LTV for remortgages and up to 40% LTV for 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.

1st July 2020: This product is available for properties in England and Wales where it is still not possible to obtain a physical valuation.

  • Min age 55
  • Max property value £750,000
  • Limited tranche availability

A Retirement Interest Only AVM 3 year discount up to 60% LTV for remortgages and up to 40% LTV for 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.

1st July 2020: This product is available for properties in England and Wales where it is still not possible to obtain a physical valuation.

  • 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
  • Valuation Type
    Desk Top Valuation
  • Maximum Loan to Value for remortgage
    60% including fees
  • Maximum Loan to Value for purchase
    40% including fees
  • Desk Top Valuation Admin Fee
    £95
  • Product Fee, which can be added to the loan.
    £999
  • 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
  • Min age 55
  • Max property value £750,000
  • 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 £433,149 made up of the loan amount plus interest (£218,832), a  desk top valuation admin fee (£95), 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 an upfront Desk Top Valuation Admin fee of £95.
  • Product fee £999. This may be added to the loan subject to the maximum LTV.
  • 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)

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

  • 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.

Age Limits

The minimum age is 55 for all applicants. There is no maximum age. Applicants must be already retired and reliant on pension income.

Mortgage Term

There is no maximum term for this mortgage product.

Lasting Power of Attorney (LPA)

The Society recommends that borrowers have a Lasting Power of Attorney registered.

Acceptable Interest Only Repayment Strategy

Where required, the Society will accept life events such as the sale of the mortgaged property when either the 2nd borrower dies or moves into a care home as an acceptable repayment strategy.

Payments must be made monthly by direct debit.

Proof of Income

  • Proof of pension income.
  • Last 3 months bank statements.
  • Completed Budget Planner.
  • If applicable, 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..

Loan Size

Minimum loan size £25,000.

Maximum loan size for remortgages only is £450,000 up to 60% LTV

Maximum loan size for purchases is £300,000 up to 40% LTV

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, meaning that if the applicant moves home they can take it with them, subject to our lending criteria at the time.

Property type exlusions for AVM

Certain property types will not be suitable for a desk top valuation and will require a Standard Valuation report. The property types that are excluded are:

  • Flats or maisonettes
  • Properties valued in excess of £750,000
  • Leasehold properties with less than 85 years unexpired lease
  • Properties with 5 or more bedrooms
  • Properties built before 1880
  • Listed buildings
  • Properties with land exceeding 1 acre
  • A barn or other type of conversion
  • New Build or undergoing significant structural alteration
  • Property of non standard construction
  • Subject to Shared Ownership
  • Subject to structural movement past or present
  • In any of the followiing locations:
    • SE28 Thamesmeade
    • SE2 Abbeywood
    • SE18 Woolwich
    • CA13 Workington
    • CA14 Cockermouth
  • The property must have a minimum value of £100,000 execpt in the following postcode areas where the minimum estimated value must be £150,000:
    • Within M25 (UB, HA, W, NW, N, E, IG, WC, EC, SE, RM, BR. CR, SM, SW, TW)

Interest

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