Delayed Start mortgages

A smart solution for first-time buyers

"Moving home comes with a lot of costs, and for many clients, the first few months can feel particularly stretched financially.

That's why we created Delayed Start. By allowing eligible clients to delay their first mortgage repayment by up to three months after completion, it could give them valuable breathing space while they deal with the costs that often come with a home move.

It's a simple idea, but one that could make a real difference to clients when they need it most."

Jen Lloyd
Head of Mortgage Products and Propositions

How it works

• Delayed repayments for up to three months: No mortgage repayments for up to the first three months (one, two or three months – depending on the product chosen) after completion, but interest will accrue from day one.
• Range of fixed rate options: Clients can fix their interest rate for two or five years.
• High LTV: Clients could borrow up to 95% of the property value, meaning they may only need a 5% deposit.

Things to know

• Mortgage repayments are delayed for up to the first three months (one, two or three months - depending on the product chosen) after completion. The interest is calculated daily at the current rate and then added to the overall mortgage balance on the first of the month. As a result, your client will pay more interest over the term of their mortgage because their future repayments will include the interest accrued during the delayed payment period.
• If your client can afford to make repayments up to the first three months (one, two or three months – depending the product chosen) after completion, then another product may be more suitable.
• The delayed start feature of this mortgage may be paired with our Income Booster scheme, Track Record and Shared Ownership providing further support. It cannot be combined with government schemes such as First Homes (England) or Help to Buy (Wales).
• Clients can make overpayments up to 10% of the original loan amount per year (including up to the first three months even if a delayed start period is in place), without incurring Early Repayment Charges.
• Our Delayed Start mortgages can be used to purchase New Build properties.