Service charge loan

We only offer our own non-portable mortgages which means you are not allowed to transfer the mortgage to another property. 

We’ll charge interest on the amount you borrow. Your repayments will be go towards the interest and capital.

The interest rate for this type of loan is variable and tracks the Bank of England base rate. 

The rate varies depending on which product you take: 

• resident repayment discretionary loans: +2.5% above the Bank of England base rate
• non-resident repayment discretionary loans: +4% above the Bank of England base rate
• voluntary lifetime discretionary loans for exceptional hardship: +2.0% about the Bank of England base rate

Your repayments will go towards the interest and the capital.

For the voluntary lifetime discretionary loan no repayments are due until any of the following happen:

• death
• sale of the property
• potentially remortgaging

The interest is not compounded (you do not pay interest on the interest).

We charge ‘simple’ interest which is calculated annually, applied monthly, but applicable daily. 

Which loan (if any) we offer you will depend on your circumstances.

The residential and non-residential loans depend on affordability. 

The lifetime loan is for those experiencing exceptional hardship.

Interest rate changes

When the Bank of England changes its rates (up or down) we’ll contact you with the new rate and your monthly repayment, if applicable.

You’ll need to adjust your standing order. We cannot do this for you.