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3.29% Contractor 2 year discount [DC20]

Follow on rate SVR currently 5.24%.
The overall cost for comparison is 5.1% APRC

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Specially designed for contractors.
  • up to 80% LTV
  • no application fee
  • minimum 7 months contracting
Specially designed for contractors.
  • Initial Rate, a discount of 1.95% from our SVR for 2 years
    3.29% variable
  • Followed by our Standard Variable Rate (SVR) for the rest of the term
    5.24% variable
  • The overall cost for comparison is
    5.1% APRC
  • Maximum LTV
    80% including fees.
  • Application Fee
    none
  • Product fee - may be added to the loan.
    £999
  • Early Repayment Charge
    Charges will apply to any lump sum or full redemption paid over 10% of the capital balance
    1.00% for year 1
    0.50% for year 2
  • up to 80% LTV
  • no application fee
  • minimum 7 months contracting

Representative Example

A mortgage of £115,900 payable over 35 years initially on a discount of 1.95% from our Standard Variable Rate, currently 5.24%, giving a pay rate of 3.29% for 2 years and then on our Standard Variable Rate, currently 5.24%, for the remaining 33 years would require 24 payments of £469.12 and 396 payments of £601.65.

The total amount payable would be £249,920.28 made up of the loan amount plus interest (£132,588.28), a valuation fee (£160), legal fees (£148), product fee (£999), an exit fee (£100) and a funds transfer fee (£25).

The overall cost for comparison is 5.1% APRC representative.

Further Information

Fees

  • There is no application fee.
  • There is a product fee of £999.
  • 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 0.40% 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.

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

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. We use 5 x day rate x 48 weeks to calculate the income. Income multiple cap is 4.5 x first income plus 3.5 x second income or 4 x the joint income. We will verify proof of affordability.

Repayment

This mortgage is available on a capital and interest repayment basis. Interest only is available up to 75% LTV. Payments must be made monthly by direct debit.

Proof of Income

  • CV which evidences a continuous career in a similar role or area of business.
  • At least 7 months contracting experience with at least 1 renewal.
  • Current contract, which must have been in existence for a minimum of 1 month. Each contract will be considered on its own merits.
  • 3 months business and personal bank statements.
  • A minimum of 3 months invoices / payslips.
  • If operating through a limited company for more than 2 years, audited/certified accounts and certificate of incorporation.
  • If the applicant is working under an umbrella company we will need 3 months bank statements.
  • A copy of VAT registration certificate if applicable.
  • Proof of appropriate PI cover.
  • Certified photographic proof of identity.
  • We will carry out electronic verification to prove identity, but we may also ask for documentary evidence of identity.
  • Credit searches will be made and 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 but applicants must not be retired during the mortgage term. Cases are considered on individual circumstances.

Loan Size

Minimum loan size £50,000.

Maximum loan size £750,000 up to 80% LTV 

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

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.