Vernon Building Society mortgage review September 2020
Vernon Building Society is an established mortgage lender, having started in 1924. It provides fixed-rate, discount and buy-to let mortgages, as well as specialist deals for first-time buyers and older borrowers.
There are 95% loan-to-value mortgages and a special “Family Assist” mortgage, which could appeal to first-time buyers. There are also specialist mortgages for those borrowing into retirement.
Compare Vernon BS mortgages
If you borrow £170,000 over a 25-year term at 1.75% p.a. (fixed) for 62 months reverting to 4.74% p.a. (variable) for the remaining term, you would make 62 monthly payments of £700.04 and 238 monthly payments of £912.95. The total payable would be £261,424.58, which includes interest of £90,685 and a product fee of £495. The overall cost for comparison is 3.6% APRC representative.
What types of mortgage does Vernon Building Society provide?
- Fixed-rate mortgages. Vernon Building Society offers fixed-rate deals with terms of three years or five years. These could appeal if you’re looking for your mortgage repayments to be consistent. The maximum loan-to-value is 95%, although you’ll secure a better rate with a larger deposit. Some products have an arrangement fee attached. After the fixed-rate period ends, you’ll be automatically switched to Vernon Building Society’s standard variable rate.
- Discount mortgages. These mortgages will be fixed at a specific percentage below the lender’s standard variable rate for a term of either two or three years. After this term ends, you’ll be switched onto the standard variable rate. The maximum loan-to-value is 95%, although you’ll secure a better rate with a larger deposit. Some products have an arrangement fee attached.
- Offset mortgages. An offset mortgage with a three-year fixed rate is available for those with a Vernon Building Society savings account. Rather than pay interest on your savings, the lender will offset your mortgage balance by the amount in your account. The account has a maximum loan-to-value of 80% and an arrangement fee is attached. After three years, you’ll be switched onto the lender’s standard variable rate.
- Retirement mortgages. Vernon Building Society has special deals designed for those aged over 55. These mortgages come with a five-year fixed rate, before reverting to the lender’s standard variable rate. The maximum loan-to-value is 50%.
- Family assist mortgages. The family assist mortgage is a four-year discount mortgage, which allows the customer to borrow 100% of the property value, provided a family member can deposit 20% of the property value in a Vernon Building Society savings account. The money will be released back to the family member after a minimum of four years.
- Buy-to-let mortgages. The lender offers a five-year fixed-rate mortgage and three-year discount mortgage for buy-to-let properties. These products have a maximum loan-to-value of 75% and an arrangement fee is attached.
- Interest-only mortgages. Vernon Building Society offers residential and buy-to-let mortgages in an interest-only format. You’ll need a larger deposit to qualify, and will have to show evidence of your strategy to pay off your balance at the end of the mortgage term.
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How do I contact Vernon Building Society?
You can get in touch with Vernon Building Society via the contact form on its website or by calling 0161 429 6262.
Alternatively, you can visit one of its six branches in and around Stockport.
How do I apply for a Vernon Building Society mortgage?
You can complete your mortgage application in a Vernon Building Society branch or by calling 0161 429 6262.
You’ll need to have your personal details to hand, as well as detailed information about your income and outgoings.
Approval for a Vernon Building Society mortgage will be subject to a credit check.
To be considered for a Vernon Building Society mortgage, you must:
- Be aged 18 or over
- Be no older than 85 at the end of your mortgage term
- Secure your mortgage against a property in England and Wales valued at £80,000 or more
- Have been in employment for at least the past three months (self-employed applicants may be considered if they can show two years worth of account details)
- Have suffered no bankruptcies, individual voluntary arrangements or county court judgements over £500 in the last three years
Mortgage loans can be between £25,000 and £1,500,000 depending on your circumstances. Mortgage terms range between five and 35 years.
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