On a 95% LTV, the mortgage offers a 1.85% discount in year 1, 0.85% discount in year 2, 0.50% discount off the variable rate in years 3 and 4 and a 0.50% discount from year 5 onwards.
The mortgage offers daily calculation of interest, overpayments and payment holidays and up to 10% capital repayments are allowed each year without charge for four years. The early redemption fees are 4% in year 1, 3% in year 2, 2% in year 3, and 1% in year 4.
Commenting on the mortgage, Jennifer Holloway, head of corporate communications, said, “For many homeowners, the first few years of owning their new property present the biggest challenge in terms of financing a loan. The 4-year stepped discount mortgage offers the greatest discount in the first year, when finances are particularly tight, with further discounts over the next three years. In addition, the borrower will then continue to pay reduced rates for the lifetime of their mortgage by benefiting from the society’s concessionary mortgage discount scheme.”
