Mortgages - Important information
Mortgage repayment options
Once you've chosen the most suitable Offshore Mortgage, you will need to decide how to repay it. The options available are repayment or interest only.
A mortgage where the borrower only repays the interest arising on the principal amount borrowed. The principal amount borrowed is repaid at the end of the term, usually via an investment product such as a pension, life assurance product, stock market investment or sale of a property.
A mortgage where the borrower repays both interest and a portion of the capital owed each month. This means that your outstanding mortgage balance will reduce year on year over the term of the loan.
Early repayment charges
If you decide to repay your mortgage in full before the end of the term, that's fine. Under those circumstances, the following charges will apply:
Mortgage Type |
Early Repayment Charge |
|
Regulated Mortgage Contract - Base Rate Tracker |
An Early Repayment Charge equivalent to 3% of the outstanding balance + £150 administration fee will apply if the mortgage is repaid within the first year. Thereafter, a £150 administration fee will apply. |
|
Regulated Mortgage Contract - Libor Tracker |
An Early Repayment Charge equivalent to 1 month's interest calculated on the outstanding balance + any breakage costs + £250 administration fee will apply if the mortgage is repaid within the first 3 years. Thereafter, any breakage costs + £250 administration fee will apply. |
|
Buy to Let Mortgage - Base Rate Tracker |
An Early Repayment Charge equivalent to 2% of the outstanding balance + £150 administration fee will apply if the mortgage is repaid within the first 3 years. Thereafter, a £150 administration fee will apply. |
|
Buy to Let Mortgage - Libor Tracker |
An Early Repayment Charge equivalent to 2% of the outstanding balance + any breakage costs + £150 administration fee will apply if the mortgage is repaid within the first 3 years. Thereafter, any breakage costs+ £250 administration fee will apply. |
Interest rate options
Tracker Rate
Our Tracker Rate mortgages are linked to either (1) Bank of Scotland Base Rate which tracks Bank of England Base Rate, or (2) Libor. We charge you an amount above these rates. This means the rate you pay can go up and down.
