Mortgages - Interest Roll Up Scheme

With this type of mortgage the loan is secured on the property. Interest is not paid on the loan until the property is sold.

However, there is an option to pay part, or all, of the interest at any time. Interest is charged on the original loan as well as on the interest that has already been added in previous years and is added to the loan on the 31st December of each year. Because of this, the amount owing can grow quickly, especially if a lump sum is taken at the start of the loan.

Eventually, this might mean that the amount owed is greater than the value of the property. This is known as "negative equity" and the Society does not offer a no negative equity guarantee.

As our interest rates are variable and we do not offer a "no negative equity guarantee", we have not applied to become a member of SHIP (Safe Home Income Plans).

The Key features of this mortgage are detailed opposite. In addition to this, copies of our Tailored Mortgages and Mortgage Information leaflets are available in a PDF download.

Tailored Mortgages Leaflet PDF2.2MB

Mortgage Information Leaflet PDF2.4 MB

For further details and to discuss your clients requirements please contact our Mortgage Department on 01582 765 411 or email mortgages@harpendenbs.co.uk

*The actual rate payable will depend upon your clients individual circumstances, please ask for a personalised illustration.

This mortgage will be regulated by the Financial Services Authority (FSA). Follow this link for information regarding Mortgage Regulation.

To discuss the requirements of your client, either complete our on-line Enquiry form or contact us. Building insurance cover is required and can be arranged by the Society.

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

The Society is authorised and regulated by the Financial Services Authority