Holmesdale Building Society

Holmesdale Building Society was founded in 1855 and has its headquarters in Reigate, Surrey, England. They boast that they are “large enough to cope, small enough to care.” The types of mortgages offered are: standard variable, discount, tracker, and stepped. All of these mortgages are available if you need to borrow 75% or less of the value of your home. If you need to borrow more, additional security will be required.

The standard variable mortgage from Holmesdale has two variants: repayment or interest only. Both of these loans offer the standard variable mortgage rate and are available for 10, 15, 20, or 25 year terms.

Holmesdale offers two different discount schemes. The first one gives you a 1.00% discount off of the Society’s Standard Variable Rate for two years. After these two years, your rate will track the mentioned variable rate. If you completely pay off the loan within the first two years, you will be charged an early repayment fee. The second discounted mortgage offers .50% off of the Society’s Standard Variable Rate for the first four years. This plan charges no early repayment fee.

The tracker mortgage has either two or three year initial terms, during which time the rate will be based on the Bank of England Base Rate. For the two year term tracker mortgage, your rate will actually be at a percentage off of this Bank of England Base Rate for that term, and then track the Society’s Standard Variable Rate for the remainder of the mortgage’s life. If you repay this loan completely during the first two years, you will be charged a fee based on interest. The three year tracker rate is set at the Bank of England Base Rate for the first three years, followed by the Society’s Standard Variable Rate for the remaining years. This version also charges an early repayment fee if the loan is repaid during the first three years.

Holmesdale’s stepped rate mortgage means that for the first year your rate will be at a significant percentage below the Society’s Standard Variable Rate. The second year it will have a smaller percentage off of this rate. At the third year, you will start being charged the Society’s Standard Variable Rate with no discount. Early repayment fees apply.

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