More information about our fixed rate mortgages
About the type of mortgage
This mortgage will be repaid on a capital and interest repayment basis. The monthly payments are made up of a portion of the capital amount borrowed, as well as the interest charged for the month on the mortgage. This means that the outstanding balance is reduced each month in line with your mortgage term. This ensures that your mortgage will be fully paid off at the end of the mortgage term, providing you make all the required payments on time.
About the rate
This mortgage has a ‘fixed rate’ period at the start of the term, which means that your repayments will be fixed for the duration of that period, no matter what happens to interest rates generally. At the end of the fixed rate period, you will automatically move onto the M&S Bank Standard Variable Rate. You can then either choose to stay on this rate, select another product from the M&S Bank product range available at that time or look to remortgage.
What is the maximum I could borrow?
If you are looking to remortgage or move home, you could borrow up to £1 million, subject to loan-to-value (LTV) ratios (maximum £400,000 above 80% LTV). For First Time Buyer mortgages the maximum loan amount is £400,000. All mortgages are subject to our lending criteria.
How long are the available mortgage terms?
Our mortgage terms are between 5 and 35 years for first time buyers and home movers and between 5 and 30 years for remortgages, depending on your circumstances.
Can I move home during the fixed rate period?
Provided you have had your mortgage with us for at least six months, you may be able to transfer it from one property to another if you move home. This will be subject to a full financial assessment being carried out and the new property meeting our lending criteria at that time.
Is there an extended tie-in period?
No, once the fixed rate period is over, you can move your mortgage to another rate or another provider without penalty.
Can I make overpayments?
Yes, you can make overpayments of up to 10% of your mortgage balance in each year of the fixed rate period, without incurring an early repayment charge. If you exceed your annual overpayment allowance, an early repayment charge will be charged on the amount you have repaid above the 10% allowance. At the end of the fixed rate period, you are able to make unlimited overpayments.
Any early repayment charge applicable will be calculated based upon the percentage charge at the time of the overpayment as detailed within your European Standardised Information Sheet (ESIS) document.
Can I pay off the mortgage early?
If you fully repay your mortgage whilst you are in the fixed rate period you will incur an early repayment charge.
Details of the early repayment charge will be set out in your ESIS document.
Will I incur an exit fee?
No, we do not charge an exit fee.
How is interest calculated?
Interest is accrued on a daily basis but is charged to the mortgage account monthly, in advance, on the 1st of each month, and is calculated by using the mortgage debt at the end of the last day of the previous month.
This information does not contain all of the details you need, so remember to read your ‘European Standardised Information Sheet’ (ESIS) before choosing a mortgage. For information on M&S Bank Mortgages and ESIS documents, contact us on 0800 923 1536. Lines are open 8am-8pm Monday to Friday, 9am-1pm Saturday (excluding bank holidays). Calls are recorded.