Advantage Mortgage

The Advantage Mortgage aims to help with the early years of your mortgage payments by providing you with a discounted interest calculation basis in the early years of your mortgage. The interest rate, (which tracks Base Rate), is variable and the margin charged above Base Rate is discounted for a set period of time (up to 5 years). At the end of the discount rate period the interest rate calculation basis will be based upon a higher margin above Base Rate (to be agreed between us at the outset), or you may have the option to move to another mortgage product.

Rates and charges

The Advantage Mortgage is available on a maximum LTV of 80%. We offer competitive interest rates which are tailored to your circumstances.  In the case of any early repayment a charge of 0.5% applies during the initial years*.

*The charge comprises of 0.5% of the amount repaid plus an admin fee.

Maximum loan repayment periods are aligned to the rest of our mortgage product suite being 30 years if drawn on an amortised repayment basis, or over a maximum term of 35 years if drawn as a serial repayment loan.

In order to finalise the mortgage, we have an Arrangement Fee in place of 0.25% of the value of the mortgage. A minimum fee of £999 applies.

Should you decide to switch to another mortgage solution after the end of your initial rate, this is possible with a one-off product switch fee of 0.25%, minimum £999.

Finally, we aim to contact you prior to the end of the disciunted rate period, to allow you enough time to decide how to proceed and inform you of your options going forward.

Other costs to consider

In addition to the above costs, you will also be responsible for the Bank's legal costs, which will depend on the mortgage amount. A written estimate of the Bank's legal costs will be made available to you upon request and when your loan application is agreed.  You should also bear in mind that you will have your own legal costs and expenses (e.g. taxes) to meet in respect of your purchase of the property. Please contact us for more information.

Suitable property insurance will be a condition of the mortgage, but is not arranged by the Bank and is your sole responsibility. Whilst we do not usually make life insurance a condition of the mortgage, you should consider if you would like to arrange cover to repay the loan in the event of death or loss of income from illness. There are various types of life cover available, and you should take your own independent advice in this regard.

Below is an illustrative example of two different mortgages types offered by Trusted Novus Bank.

Please note overall rate subject to change in line with Bank of England base rate.


This graph is only for illustration purposes to show the difference in mortgage solutions.

A guide of what could happen over a period of time, the figure used in this graph are only for example purposes.

Please note this only looks at your minimum capital payments and doesn’t include any voluntary overpayments you might make or interest rates.

  Example 1  Example 2
Mortgage type Capital and interest (Serial loan) Capital and interest (Amortising loan)
Max. loan to value 80% 80%
Amount borrowed £250,000 £250,000
Term 25 Years 25 Years
No. of Monthly instalments 300 300
Other costs
- Arrangement fee
- Valuation fee
- Legal fee
.
£999
£400
£1250
.
£999
£400
£1250
Borrowing rate 2.00%
(plus Base Rate followed by Base Rate + 4.00% after 5 years)
2.00%
(plus Base Rate followed by Base Rate +4.00% after 5 years)
APRC 3.40% 3.50%
Initial payment £1,271 £1,072
Total interest payable £108,659 £124,899
Total amount repayable £358,659 £374,899
Security required Property Property

Are you eligible?

In order to find out if you are eligible for the Advantage Mortgage we will assess your income and expenditure, assets and liabilities. This will help us determine the level of borrowing you will be eligible for.

The Advantage Mortgage is only available for mortgage applications of over £100,000.

Your home may be repossessed if you do not keep up the repayments on your mortgage.