Teachers Building Society has launched three fixed-rate mortgages aimed at members buying their first home, working on a contract basis, approaching or in retirement.
Key features:
Three-year fixed-rate first time buyer loan at 5.49 per cent, which switches to standard variable- rate (currently 4.99 per cent) at end of term for loans to value up to 80 per cent.
Three-year fixed rate teacher contract mortgage at 3.69 per cent switching to SVR for remainder of term, for LTVs up to 80 per cent.
Two-year Teacher Later Years mortgage at 4.59 per cent, switching to SVR for remainder of term, for LTVs of up to 75 per cent. Maximum age on application is 70 and 83 at end of term. Minimum income £13,000.
Charges: arrangement fee £899, application fee £99.
IFA VERDICT:
Paul Dorward, mortgage adviser of Sheffield-based Pad Financial said that the terms of the later years mortgage were highly unusual: “Post MMR most lenders will want the term to end before retirement. But one thing to watch is that after the two year fix ends, it is highly unlikely that you will be able to remortgage elsewhere, so you will be stuck with Teachers’ SVR.”
