Need To Know
  • New fixed rate cash ISAs

Teacher exclusive, 2 year variable rate mortgage 20% deposit, 3.09% variable

Available for loans up to 80% of the purchase price or valuation of the property, whichever is lower, and 75% for mortgages available in conjunction with the Government's Help to Buy scheme.

Please note for Help to Buy applications: the monthly payment quoted for this mortgage does not include repayments towards the equity loan.

PLEASE NOTE: YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. 

Deposit % Term Initial interest
rate
Follow on rate Overall cost for
comparison
Max LTV Arrangement
fee
Application
fee
20% 2 years 3.09% 5.69%
after 2 years
5.4% APRC 80.0% £0.00 £0.00

Key features

Variable Rate

A variable rate, currently 3.09%, which is discounted by 2.60% from our Standard Variable Rate for the first 2 years. It then changes to our Standard Variable Rate, which is currently 5.69% and remains on our variable rate terms for the rest of the mortgage.

The overall cost for comparison is 5.4% APRC representative.

What you pay

  • Daily interest.
  • A valuation fee is payable for all properties worth £800,000 or more.

Early repayment charge

An Early Repayment Charge of 3% on the amount repaid will be applied for the duration of the product term. You can overpay by up to 10% of the loan outstanding per calendar year without charge.

What we pay

  • The first valuation fee for properties worth less than £800,000
  • £100 cashback upon completion of your mortgage, if either or both applicants are NEU members.

Representative example

A mortgage of £204,590.00 over 30 years initially on a discounted variable rate of 3.09% (equal to a 2.60% discount off our SVR) for 2 years and then our Standard Variable Rate, currently 5.69%, for the remaining term, would require 24 monthly payments of £872.52 and 336 monthly payments of £1167.48.

The total amount payable would be £413,341.12 made up of the loan amount plus interest (£208,641.12) with a Funds Transfer Fee of £25.00 and a Mortgage Exit Fee of £85.00.

The overall cost for comparison is 5.4% APRC representative.

Please note: the representative example is for a house purchase only. For remortgage applications, certain fees do not apply. Please contact us for details.

This information does not contain all of the details you need to choose a mortgage. Make sure that you read the separate European Standardised Information Sheet before you make a decision. For full details, please call our friendly team on 0800 378 669.

Product Reference: 589 

Please note: Mortgages are secured on your home. You could lose your home if you do not keep up payments on your mortgage. Terms and conditions apply. Mortgages are subject to underwriting and criteria. Please contact us for full details.

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