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2.79% Reverse JBSP 3 year discount [D185]

Follow on rate is our SVR, currently 5.64%
the overall cost for comparison is 4.3% APRC

Back

A unique solution enabling children to support their parents to remain in their home when their existing Interest Only mortgage needs to be repaid back.

  • Earned income considered up to age 75
  • Up to 4 applicants accepted

A unique solution enabling children to support their parents to remain in their home when their existing Interest Only mortgage needs to be repaid back.

  • Initial Rate, a discount of 2.85% from our SVR for 3 years
    2.79% variable, but which will not go below a floor of 2.79% during this period.
  • Followed by our Standard Variable Rate (SVR) for the rest of the term
    5.64% variable
  • The overall cost for comparison is
    4.3% APRC
  • Maximum Loan to Value
    90% including fees
  • Application fee
    none
  • Product fee - may 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
    12 months - 3%
    24 months - 2%
    36 months - 1%
  • Earned income considered up to age 75
  • Up to 4 applicants accepted

Representative Example

A mortgage loan of £102,024 (which includes a product fee of £999 and a funds transfer fee of £25) payable over 10 years, initially on a discount of 2.85% from our SVR, currently 5.64%, giving a pay rate of 2.79% for 36 months and then on our Standard Variable Rate, currently 5.64%, for the remaining period would require 36 payments of £975.29 and 84 payments of £1,073.26.

There is a collar of 2.79% on this product which means the rate during the discount period will not go below that rate.The total amount payable would be £125,922.28 made up of the loan amount plus interest of £23,240.28 plus a valuation fee of £310, legal fees to your solicitor of £248, and exit fee of £100.

The overall cost for comparison is 4.3% APRC representative.

Further Information

Fees

  • There is no upfront 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

Additional requirements for Reverse Joint Borrower Sole Proprietor

Have at least one of the borrower's to be residing in the property.

It is recommended that all applicants take advice about the tax implications of the way the mortgage finance and property ownership will be structured.

Children supporting their parents mortgage will be jointly and individually liable for the mortgage along with occupiers.  

Up to a maximum of 4 applicants per application allowed.

Higher Lending Charge

The Society will purchase a Higher Lending insurance to provide additional security where the amount of the loan exceeds 80% of the valuation of the property.

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.

  • 12 months - 3%
  • 24 months - 2%
  • 36 months - 1%

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

You can check affordability through our calculator where we assess on affordability as an alternative to income multiples. Please note we will fully review bank statements and expenditure during the underwriting process. Click here to find out more

Repayment

This mortgage is available on a capital and interest repayment basis or up to 60% LTV on interest only with a suitable repayment vehicle. Payments must be made monthly by direct debit. 

Age Limits

The minimum age is 18 for all applicants. There is no maximum age. Earned income considered up to age 75. Cases are considered on individual circumstances.

Loan Size

Minimum loan size £25,000.

Maximum loan size £500,000 up to 90% LTV

Mortgage Term

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

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

Interest

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