Mortgages for the real world
Get a decision in principle
Additional information
- Based on buying a property with a mortgage of ( loan-to-value).
- The rate you pay may rise or fall during the mortgage term. It won't ever drop below .
- We don't charge arrangement fees.
- You can make extra payments at any time without additional charges. However, if you repay the mortgage in full early, you'll have to pay a early redemption charge.
Your deposit or equity can't be higher than the property you plan to purchase.
The minimum mortgage we can offer is £20,000.
Please increase your mortgage amount or property price.
Or, if you are looking to borrow a smaller amount, consider applying for a Home owner loan instead.
The maximum mortgage amount we offer currently is £450,000.
Please try reducing the property value or increasing your deposit.
Your loan-to-value ratio is too low. We require a minimum LTV of 5%.
Please increase your mortgage amount or decrease your property price.
Your deposit is too low for the property price you've entered.
To meet our lending rules, you need a deposit of at least £40,000. (80% LTV)
Your loan-to-value ratio is too high. We offer mortgages up to 80% LTV.
Please increase your deposit or decrease your mortgage amount.
Unfortunately, we don't currently have a product that matches your requirements.
Please adjust your mortgage amount or loan-to-value ratio, or contact us to discuss your options.
How we worked this out
(minimum needed for this amount)
£0(4.5× your income)
Want to buy a more expensive property?
How we worked this out
Want to buy a more expensive property?
How we worked this out
Deposit too low
What are your options?
Speak to a mortgage advisor
Why choose London Mutual
Market-leading rates (from 3.64% variable)
Support for Forces Help to Buy and non-UK service personnel
Experienced mortgage advisors to support you through the home-buying process
No arrangement fees or overpayment charges
Borrow between £20,000-£450,000
Mortgage payments directly from your salary if you work for an eligible employer
Who we're here for
Remortgaging after Divorce or Separation
Forces Help to Buy
Initial Disclosure about our mortgage services
Representative Example
A mortgage of £200,000.00 payable over 25 years initially on a discounted rate of 3.64% (variable) for 3 years, followed by our standard variable rate of 6.89% for the remaining 22 years.
Monthly repayment: £1,016.33 for 36 months, then £1,358.72.
Total amount payable: £395,289.38.
APRC: 6.15%.
The mortgage is secured on your home. Your home may be repossessed if you do not keep up repayments.
Glossary
Loan to value (LTV)
Loan to Value (LTV) is the percentage of a property’s value that you borrow with a mortgage compared to the amount you put down as a deposit. For example, a £160,000 mortgage on a £200,000 home has a 80% LTV.
Variable rate mortgage
A variable rate mortgage is a home loan where the interest rate can go up or down over time. Your monthly payments may change depending on the lender’s rate or wider market conditions.
Discounted period
The discounted period is the initial phase of a mortgage when you pay a reduced interest rate. After this time ends, your mortgage usually moves to the lender’s standard variable rate.
Standard variable rate (SVR)
The standard variable rate (SVR) is the default interest rate your mortgage switches to when your fixed or discounted deal ends. SVRs are set by lenders and can change at any time.
Residential mortgage
Residential property is a home that you live in as your main residence. Mortgages for residential property are different from buy-to-let mortgages, which are for rental homes.
How to apply
Give us a call
Get a decision in principle online
Good to know
Who is eligible for a mortgage with London Mutual?
All our mortgages are subject to our underwriting process, which includes full employment, credit and affordability checks.
In addition:
- All applicants must be over 18 years old at the time of application
- All applicants must be members of London Mutual Credit Union (or eligible to join)
- At least one applicant must have been in continuous employment for over 12 months, or self-employed for over two years
- All applicants must not be bankrupt, in an IVA, or have been in any other form of legal debt arrangement in the past 7 years
- All applicants must be permanently resident in the UK
Do you offer fixed rate or tracker mortgage products?
No, currently we exclusively offer variable rate mortgages, with discounted periods available based on the mortgage loan-to-value ratio (LTV).
Variable-rate mortgages are not suitable for everyone, so you should ensure that you have fully considered the features of this product and the potential risks before you apply.
Do I need to be a member of the credit union to apply?
No. As long as you meet the criteria for membership, you will become a member of London Mutual Credit Union at the same time as you apply for your mortgage.
These requirements apply to all applicants, so if you are applying jointly, it is important to be sure that everyone meets our membership criteria before you apply.
Can I remortgage with you?
Yes, our mortgage products are available to both first-time buyers and those with an existing property who are looking to move lenders.
Our discounted rates are available based on Loan to Value (LTV), so if you have built up equity in your current property, you are more likely to be able to benefit from these rates.
What is the maximum I can borrow?
We currently offer mortgages of up to £450,000. This is in addition to your deposit or any equity you currently have in the property, so the value of the property itself will be higher.
How large a deposit do I need?
We currently offer mortgages of up to 80% Loan to Value (LTV).
This means that you need a deposit which is a minimum of 20% of the valuation or purchase price, whichever is lower.
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