The Mansfield Building Society

Family Assist 3 Year Discounted Rate House Purchase Only - DFM001 - up to 100% LTV

 
Mortgage Product Term Initial Rate1 Overall Cost for Comparison2 Max LTV3 Early Repayment Charge Product Fees
Family Assist 3 Year Discounted Rate House Purchase Only - DFM001 3 years Currently 3.29% 5.2% APRC 100% 3% £199 application fee, no completion fee

Representative Example

A mortgage of £152,000.00 payable over 33 years initially on a variable rate, currently 3.29% for 3 years and then on our current standard variable rate of 5.59% for the remaining 30 years would require 35 monthly payments of £630.55 and 360 monthly payments of £827.97 plus one initial interest payment of £178.11.

The total amount payable would be £321,234.56 made up of the loan amount, plus interest and fee(s) totalling £169,234.56. This includes Application Fee (£199), Valuation Fee (£194), Legal Fees (£350), Chaps Fee (£25) and Redemption Administration Fee (£150).

The overall cost for comparison is 5.2% APRC representative.

Your home may be repossessed if you do not keep up repayments on your mortgage

Mortgage Product Features

  • Available for house purchase only
  • Capital Repayment Only 
  • Minimum loan size £50,000, maximum loan size £250,000
  • Valuation fee payable by customer
  • Legal fees payable by customer
  • £400 cashback
  • An early repayment charge of 3% of the agreed advance including any fees added will apply if the mortgage is redeemed at any time during the first 3 years
  • A family member must provide security equal to 20% of the value of the property being purchased as either savings deposited with the Society (Option 1) or as collateral from equity in their property (Option 2). See below for details

 

  • Family member uses their savings to help the buyer without having to 'give' the money to the borrower.
  • Family member deposits funds in a specifically designed savings account.
  • The savings deposit must be for an amount equal to 20% of the value of the property being purchased.
  • Family member providing the savings deposit will not normally be able to access the funds until 7 years have passed with release of the balance subject to terms in the Agreement
  • Provided all obligations are met, savings are returned to the family member when they are released from their commitments. 

 

What to consider when using savings as security

  • The property is owned by the borrower. Family member(s) providing support have no rights to the property being purchased.
  • When family members provide savings as collateral security, they enter into an Agreement, which includes conditions relating to the borrower and the consequences of the borrower not maintaining their mortgage repayments. 
  • Savings deposited with us are held in a Mansfield Family Assist Savings account and cannot be accessed whilst the Agreement is in place (normally 7 years as above).
  • The family member's savings could be used to cover losses incurred by the Society in the event of repossession where the amount obtained from the sale of the house is not sufficient to repay the amount owing. The funds may also be called upon to make up any mortgage payment shortfall by the borrower. 
  • Where the savings option is chosen it is recommended that family members take Independent Legal Advice to ensure that they are aware of the commitment they are undertaking and the risks involved before giving us a 'legal charge' over their savings. 
  • Annual mortgage statements will only be issued to the borrower because the family member(s) isn’t responsible for maintaining the monthly mortgage payments. The family member(s) will be notified if mortgage payments are not made.
  • Allows family members to help even if they don't have savings available to tie up but do have equity in their home. 
  • Family member agrees to some of the equity in their residential property being used as security.
  • The Society takes a 'legal charge' equal to 20% of the value of the property to be purchased, over equity in the family member's residential property.
  • This means the Society will have legal rights over the family member's residential property.
  • The 'legal charge' over the family member's residential property will not normally be released until 7 years have passed with release of the 'legal charge' subject to the terms in the Agreement
  • The collateral will be released subject to the agreement of the Society, the conditions of which can be found here.

 

What to consider when using equity as security

  • The property is owned by the borrower. Family members providing support will have no rights over the property being purchased.
  • When family members provide equity as collateral security, they enter into an Agreement, which includes conditions relating to the borrower and the consequences of the borrower not maintaining their mortgage repayments. 
  • Family members using equity may be restricted if they want to move home or borrow more money themselves.
  • The family members' residential property may be repossessed by us to recover debt in the event that the borrower's property is repossessed and/or sold at a loss. Liability is limited to the amounts specified in the 'legal charge'.
  • Where the collateral charge over property is chosen, family member(s) will be required to take Independent Legal Advice before the borrower is committed to the purchase. This is to ensure they understand the commitment they are making and the risks involved before giving us a 'legal charge' over cash and/or property. To avoid a conflict of interest, family members can’t use the same solicitor who is conducting the conveyancing on the linked mortgage but it can be another solicitor from the same firm.
  • The property collateral may not be released if mortgage payments have not been satisfactorily maintained.
  • Annual mortgage statements will only be issued to the borrower because the family member(s) isn’t responsible for maintaining the monthly mortgage payments. The family member(s) will be notified if mortgage payments are not made.

 

Unless otherwise stated, our mortgage products are available for house purchase or remortgage. All our mortgage products are subject to availability and can be withdrawn at any time. 

All mortgage applications are manually underwritten by our experienced underwriters and are subject to a full assessment against our lending criteria.

It is important that you take time to read and understand the mortgage product features detailed above, and the information about our Residential or Buy to Let mortgages detailed in the General Information Guides available from the links below.

Residential Mortgage Guide Buy to Let Mortgage Guide
 

How to Apply

All of the mortgages shown are available direct from us via our qualified sales team, please call on the number above, request a call back, or submit a detailed contact request to find out more. 

To get an indication of whether this mortgage is right for you, you can use our repayment calculator to see what the potential monthly repayments might be.

Contact Us Repayment Calculator

Definitions

1 The Initial Rate is the rate available during the initial term of the mortgage. Once the initial rate term has expired, the mortgage will revert to our Standard Variable Rate (SVR).

Our SVR is set by us and is currently 5.59%, as a variable rate it may go up or down.

2 The Overall Cost for Comparison is given as the Annual Percentage Rate of Charge (APRC) and includes all charges incurred relating to the mortgage. The APRC is intended to help you as a borrower compare the interest rates on different products.

3 Like all other mortgage lenders, we will allow you to borrow against a proportion of the overall property value. This is known as Loan to Value (LTV) and is expressed as a percentage. For example, if you want to purchase a property at £100,000 and you would like to borrow £85,000, then you will need a mortgage available at 85% Loan to Value (LTV). The available LTV can vary depending upon the type of mortgage.

Shared Ownership mortgages will offer two percentages under LTV - the proportion of the property value and the proportion of the share being purchased.


Contact us

Mansfield Branch

Regent House
Regent Street
Mansfield
Nottinghamshire
NG18 1SS

Tel: 01623 676300

Opening Hours:
Mon to Fri: 9.00am* - 5.00pm
(*Weds from 10am)
Sat: 8:45am - 12:15pm

Kirkby Branch

48 Station Street
Kirkby-In-Ashfield
Nottinghamshire
NG17 7AS

Tel: 01623 756601

Opening Hours:
Mon to Fri: 10.00am - 2.00pm
Sat: 8:45am - 12:15pm

Sutton Branch

53 Portland Square
Sutton-In-Ashfield
Nottinghamshire
NG17 1AZ

Tel: 01623 554265

Opening Hours:
Mon to Fri: 9.00am* - 5.00pm
(*Weds from 10am)
Sat: 8:45am - 12:15pm

Chesterfield Branch

91 New Square
Chesterfield
Derbyshire
S40 1AH

Tel: 01246 202055

Opening Hours:
Mon to Fri: 9.00am* - 5.00pm
(*Weds from 10am)
Sat: 8:45am - 12:15pm


Date printed: 22 September, 2018 06:22
Page last updated: 20 August, 2018 15:55


The Mansfield Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Reference number 206049.
Member of the Building Societies Association.