ADDITIONAL MORTGAGE DETAILS
How much can I Borrow?
The Society may consider lending you up to 4.00 times your single or joint income, however this is indicative only and subject to a full affordability assessment which takes account of your income and expenditure. If the loan you require exceeds 80% of the purchase price/value the income multiple reduces to 3.75 times your single or joint income. If the loan you require exceeds 90% of the purchase price/value the income multiple reduces to 3.50 times your single or joint income.
Loans which exceed 90% of the purchase price / valuation (whichever is lower) may require additional security in the form of a Higher Lending Charge.
A higher lending charge is an insurance policy designed to protect the lender against losses in cases where it lends an excess of the standard loan to value sum (frequently set at 75%). To explain this it is easier to provide an example. Progressive Building Society may have a maximum percentage loan to value of 75% but the borrower may require a loan of 90%. A Higher Lending Charge may be payable by the borrower for the difference i.e. 15% and a policy written with an insurer to cover this amount in the event of default and repossession.
The policy is normally a condition of making the loan where the loan to value is over 90% but it is the borrower who pays for it even though the policy is for the benefit of the lender. In the event of repossession and there being a mortgage loss to the lender, it can look to the insurance company which has underwritten the policy to cover its loss. However the insurance company will be entitled to pursue the borrower for the lenders losses.
Mortgage security will be required and a life assurance policy may also be required.
A written quotation on loans can be obtained by contacting your local branch.
These mortgage products may be withdrawn without notice.
What types of Mortgage do we offer?
We can offer:
Fixed Rate Mortgages - Pay a fixed rate for a set period of time. Refer to mortgage products for more detail.
Variable Rate Mortgages - Pay a variable rate, discounted from or a premium to the society's variable base rate. Refer to mortgage products for more detail.
Tracker Rate Mortgages - Pay a rate that tracks the Bank of England Base Rate. The Society does not currently offer Tracker Rate Mortgages.
What costs are involved?
In addition to the initial deposit there are other costs such as legal and valuation fees, removal costs and stamp duty based on the value of your home. Your local Progressive branch will be happy to guide you through the costs of a house purchase. There may be fees or charges payable to the Society in relation to the provision of your mortgage. Full details of these will be given to you when you select the mortgage you want.
Should I employ an independent surveyor?
We will arrange a valuation for mortgage purposes and this will highlight major defects. If you are in any doubt about the soundness of the property or about the reasonableness of the price a more detailed survey, although more expensive, may be very valuable. We will be happy to advise you on the alternatives available.
Borrowing with Protection
When we offer you a mortgage on your house we can arrange a number of different types of insurance in order to protect your interests:
buildings insurance - the insurance of your property.
buildings and contents insurance - the joint insurance of your property and its contents in one policy.
repayment protection insurance - insurance to cover you in the event of unemployment, accident or sickness.