|
|
|
Mortgage Guide Any of the mortgage types detailed below can be linked to a choice of repayment options. At Leeds Building Society we will never ‘sell’ you a certain type of mortgage – we’ll simply help you decide which one is right for you. 100% Mortgages are only available to persons aged 21 or over. About You You will need to be aged 18 or over to be eligible for a mortgage. We will undertake a full appraisal of your financial status before granting a mortgage to you. 100% Mortgages are only available to persons aged 21 or over. Fixed Rate Mortgage This type of mortgage offers you the peace of mind that whatever happens to interest rates, your mortgage repayments won’t be affected during the period that your rate is fixed. Rates can generally be fixed from between 2 and 10 years , or sometimes longer at the end of which your loan will normally switch to our Standard Variable Rate, or any rate introduced to replace it. Discounted Rate Mortgage This mortgage type gives you a discount off our Standard Variable Rate for a fixed period of time. The rate applying to your account may go up or down in this time, but will, always remain at a lower level than would have been the case under our Standard Variable Rate. This option leaves you with lower monthly repayments over a period when you may well appreciate a little extra cash, especially if you’ve just moved into a new home. At the end of the discounted period, your mortgage will normally switch to our Standard Variable Rate of interest applicable at the time. Capped Rate Mortgage A capped rate mortgage guarantees that your payments will not rise above an agreed maximum interest rate (the ‘cap’) for a set period, just like a fixed rate mortgage. The difference is that if our Standard Variable Rate falls below this agreed maximum, the rate applying to your account will also fall. This double benefit means that the rate is usually set higher than a comparable fixed rate mortgage - but you can rest assured that your payments will never rise above a set level, and they may even go down. At the end of the capped period, your mortgage will normally switch to our Standard Variable Rate of interest applicable at the time. Tracker Mortgage This type of mortgage tracks the Bank of England Base Rate. Each time the Base Rate changes, your rate will change in time for your next payment (within 30 days). At the end of the Tracker period, your mortgage will normally switch to our Standard Variable Rate of interest applicable at the time. Flexible Mortgage People who want to pay off their mortgage early or expect their financial circumstances to vary during its term may find this type of mortgage particularly attractive. Our Flexible Mortgage allows you to make additional payments of any amount, at any time, without incurring any Early Repayment Charges. So you can make a one-off payment to bring down the amount you pay each month, or continue with your existing payments and reduce the term of your mortgage. You also have the option to take ‘payment holidays’ against any overpayments you have made – something you may find useful if you’re planning a career break or starting a family. Offset Mortgage The key feature of an offset mortgage is the ability to reduce the interest charged by offsetting a credit balance against the mortgage debt. For example, if the mortgage balance is £200,000 and the credit balance is £50,000, interest is only charged on the net balance of £150,000. Our Offset Mortgage allows up to three separate savings accounts to offset against your mortgage. This includes two sole savings accounts and one joint account. So you and a partner can make the most of all your savings. Shared Ownership This is a method of property purchase in partnership with a registered housing association. The borrower purchases part of the property and rents the remainder from the housing association. Also known as co-ownership, this arrangement is designed for people who could not otherwise become homeowners. Under our arrangement, you can purchase a minimum amount of 25% of the property value. The remainder of the property value can be purchased over time from the housing association until you own the property outright. Leeds Building Society helps first-time buyers by allowing them to borrow 100% of their share of the property which means no deposit is required. Non-Conforming Mortgage Our non-conforming mortgage range is a tailored suite of products that are designed for customers who have a history of impaired credit, including:
We consider a wide range of circumstances and our range of non-conforming products has been designed with this in mind. How long your mortgage will run We normally lend for up to 25 years but you can choose a shorter or longer period. You should bear in mind that an Early Repayment Charge may be payable depending upon the particular product if you choose to pay off your mortgage or remortgage before the end of any Early Repayment Period (these terms are explained in the ‘Jargon Buster’ section of this guide). If you think you may be able to pay off your mortgage early, but don’t know for certain, you might like to consider our Flexible Mortgage. Some of our other products may also allow you to do this – please ask your Mortgage Advisor. Mortgages that move with you All Leeds Building Society mortgages (with the exception of shared ownership products) are portable – which means if you choose to move house, you can simply move your mortgage with you. Please ask your Mortgage Advisor for full details as terms and conditions apply. Next >>
|
|---|
