Variable Rates Information

For applications made on or after 1 June 2010, the variable mortgage reversionary rates will be changing. For customers who applied on or after 1 June 2010 the mortgage interest rate will revert onto either the Homeowner Variable Rate or the

Buy-to-Let Variable Rate at the end of the initial product period. These rates will not be capped at 2% above the Bank of England base rate.

 

Homeowner Variable Rate

 

The Homeowner Variable Rate is the rate that applies at the end of the initial product period for owner-occupied residential mortgages. It is currently 3.99%.

 

This reversionary rate is applicable for new borrowing on house purchases, remortgages, further borrowing, product switches, and existing customers moving home.

 

Buy-to-Let Variable Rate

 

The Buy-to-Let Variable Rate is the rate that applies at the end of the initial product period for buy-to-let mortgages. It is currently 4.84%.

 

Product switches

 

For product switches, at the end of the fixed-rate/tracker period the interest rate will switch to the Homeowner Variable Rate or the Buy-to-Let Variable rate.

 

For all existing loans that completed/converted or applied before 1 June 2010, the Standard Variable Mortgage Rate (SVMR) will continue to be the reversionary rate and will be capped at 2% above the Bank of England base rate.

 

Once a customer switches to a product where the reversionary rate is the Homeowner Variable Rate or the Buy-to-Let Variable Rate, it will not be possible for them to switch to the SVMR in the future.

 

Additional borrowing

 

For new additional borrowing, at the end of the fixed-rate/tracker period the interest rate will switch to the Homeowner Variable Rate or the Buy-to-Let Variable rate.

 

However, for existing loans which completed/converted or applied before 1 June 2010, the SVMR will continue to be the reversionary rate and will be capped at 2% above the Bank of England base rate.

 

Porting and SVMR

 

Customers who port will always port their current terms and conditions, including the SVMR, where relevant, capped at 2% above the Bank of England Base Rate.

 

However, if a customer ports and takes out further borrowing after 1 June 2010, the further borrowing will have new terms and conditions and the new Homeowner Variable Rate or Buy-to-Let Variable Rate will be the reversionary rate for that part of the mortgage.

 

Existing customers moving home

 

For existing customers moving home, at the end of the fixed-rate/tracker period the interest rate will switch to the Homeowner Variable Rate.

 

However, for all loans being ported which completed/converted or applied before 1 June 2010, the SVMR will continue to be capped at 2% above the Bank of England Base Rate.

 

Existing customers switching from interest only to repayment or carrying out a term change

 

For existing customers switching from interest only to repayment or carrying out a term change who completed/converted or applied before 1 June 2010, at the end of the fixed-rate/tracker period the interest rate will switch to SVMR (capped at 2% above the Bank of England base rate).

 

Customers who completed, converted or applied before 1 June 2010

 

For customers who completed/converted or applied before 1 June 2010, the Standard Variable Mortgage Rate will apply. The SVMR will continue to stay capped at 2% above the Bank of England base rate. This guarantee does not apply to the Homeowner Variable Rate or the Buy-to-Let Variable Rate.

 

New mortgages starting on the Standard Variable Mortgage Rate are no longer available.