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20th July 2020
Darlington Building Society has today launched a new, low deposit mortgage to help local people buy their dream home.
The 90% loan-to-value (LTV), 3 year fixed product has a fixed rate of interest at 3.39% until November 2023 and is designed to provide further support for first and second-time buyers, following last week’s announcement by Chancellor Rishi Sunak of a stamp duty holiday.
The mortgage product will be available direct from Darlington Building Society or a broker, to people buying a home located within the Society’s postcode areas across the North-East and North Yorkshire which are: DL, TS, DH, YO, SR and HG.
This latest addition to Darlington Building Society’s portfolio of products will provide further stimulus for the market on top of the temporary cut in stamp duty, which raises the starting threshold from £125,000 to £500,000 until March 31 next year.
Darren Ditchburn, Darlington Building Society’s Chief Customer Officer, said: “Darlington Building Society’s core purpose is all about improving the lives of our members and communities through supporting home ownership and encouraging saving.
“There has been a lack of low deposit mortgages available both nationally and locally for a number of months because banks and building societies have withdrawn from the higher loan-to-value markets due to the COVID-19 crisis which has affected us all.
“We are, therefore, delighted to be able to provide this mortgage product to local people who are now ready to take that first or second step on the property ladder.
“And with the further incentive of a cut in stamp duty, this low deposit product could be just what is needed to make more local people’s dreams of buying a home come true.”
“Unlike some other products being introduced to the market, this will not be limited to first-time buyers,” added Mr Ditchburn. “It will be made available to second-time buyers too because that will help get the property market moving in the right direction.”
Darlington Building Society has branches in Barnard Castle, Bishop Auckland, Darlington, Guisborough, Middlesbrough, Northallerton, Redcar, Stockton and Yarm.
It is important to remember that every mortgage is secured on the individual(s) home which they could lose if they do not keep up their mortgage payments.
To find out more, visit our Mortgages page here
Darlington Building Society are required to provide you with Standard Information which is a representative of the current mortgage, which is set out below:
The total amount of the credit
Duration of the contract
The duration of the fixed period
3 Years and 5 Months
The initial fixed rate
The amount of the fixed rate instalments
The number of the fixed instalments
The frequency of the fixed instalments
Our Standard Variable Rate (SVR)
The duration of the SVR period
17 Years and 7 Months
The frequency of the SVR instalments
The amount of SVR instalments
The total amount payable
The total amount of interest payable
The overall cost for comparison
Representative example summary
The mortgaged property must be your permanent home.
This product is only available for DL, TS, DH, YO, HG or SR postcode areas.
If all or part of your income is in a currency other than Pound Sterling (£), you should be aware about the risks of fluctuations in currency exchange rates. If the value of the relevant currency moves against you by at least 20% then that may make it more difficult for you to afford your mortgage payments.
The Representative Example is based on the average loan size of fixed rate mortgages sold between 01/01/2018 – 31/12/2018 and if you were to take your mortgage product as at 01/07/2020.
All above information is for illustration purposes only and may vary depending on personal circumstances.
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