Flexi Fixed for Term

The next gen mortgage is here.

The detail

Flexi Fixed for Term is a mortgage that changes the game. It offers your clients the chance to fix their mortgage rate for their whole mortgage term. They can choose from a minimum term of 11 years, right up to a maximum term of 40 years (with any term in between).

Whatever number of years they choose, they will pay a fixed interest rate for the duration of the mortgage term, which means that their monthly payment will never change.

Extra peace of mind

Give your client the extra peace of mind that comes from knowing they won’t have to worry about fluctuating interest rates or remortgaging, ever again. They’ll know how much they need to set aside each month from the day they start paying the mortgage until the day they pay it off.

A boost in borrowing power

Flexi Fixed for Term is a different type of mortgage and so too is the way we calculate the affordability. It's all down to the way we use the fixed rate rather than a future variable stressed rate. As long as they have an acceptable credit profile, the Flexi Fixed for Term mortgage could work for them.

How it works

With your guidance, all your client needs to do is determine how long they need a fixed term mortgage for – from 11 years up to 40 – with any term in between.

Suitable for...

Clients who want to boost their borrowing power

A couple sitting on a sofa with their cat next to them

Clients who want the stability of a single monthly mortgage payment that never changes

Clients who don’t want to worry about future interest rate rises

The detail

Affordability based on the fixed term rate, not on a future variable stressed rate

Portability and Additional Lending after 12 months

Up to 85% for purchase and remortage*

Eligible Gifted Deposits accepted

Your clients can overpay by 10% from Day 1

Flexible ERCs and none to pay for life events or property sale

*Subject to product availability

Finding Flexi Fixed for Term on sourcing systems

As a new and innovative proposition in an otherwise structured mortgage product market, Flexi Fixed for Term may be hard to locate on sourcing systems. We have given you some top tips and a handy video on the filter selection to help you find them and advise your client:

Requirements:
Initial Term = Term
Rate Preference = Fixed

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Filters
Product type = Fixed
Product Period = Term

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Product Filters
Initial rate type = Fixed
Attributes = Lifetime

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Our top 5 FAQs

You’ll find the details of our credit criteria in the table below:

Secured Arrears	Secured Loan Arrears acceptable if older than 36 months.
Unsecured Arrears	Unsecured Credit Arrears acceptable if accounts now up to date (max status of 0 in last 24 months).
Unsecured Defaults	Defaults acceptable if older than 36 months.
Communication/Insurance/Bank Account and Utility defaults	We don’t take into account Communication/Insurance defaults. Utility defaults cannot exceed £250 per application. Bank Account defaults/arrears subject to underwriter discretion.
CCJ's	Satisfied CCJ's acceptable if older than 72 months.
IVA/ Bankruptcy/Repossessions	None/not acceptable.
DMP (Debt Management Plans)	None/not acceptable.
Short Term (Pay Day) Loans	Not acceptable within last 24 months. Neither new loan nor outstanding.

If your client doesn’t need the mortgage on the property anymore, for example, if they sell the property or can repay the mortgage in full (from their own funds), an ERC will not be payable.
Please note that if settling from their own funds, the source of the funds would require validation if more than £5,000. This could be in the form of bank statements or a will etc. in line with our current validation processes.
If your client wants to remortgage, an ERC will be payable.
A 0.75% gross procuration fee will be paid upon completion of a Flexi Fixed for Term mortgage. If applicable, please contact your mortgage club/network for your net amount: a total of any fees will be shown on the ESIS. Procuration fees are also paid on porting the mortgage (0.50% gross) and Additional Lending (0.30% gross).
Porting and Additional Lending are optional features of the Flexi Fixed for Term mortgage range. Clients can apply for these features no earlier than 12 months after completion.

Please see below guidance on how to source Flexi Fixed for Term on Trigold, Twenty7Tec and Mortgage Brain:

Trigold	Twenty7Tec	Mortgage Brain
Requirements Initial Term = Term Rate Preference = Fixed	Filters Product type = Fixed Product Period = Term	Product Filters Initial rate type = Fixed Attributes = Lifetime

Read our full FAQs

You'll find our full Flexi Fixed for Term FAQs here or you can contact you local BDM to discuss further.

Need more details?

Product guide Lending criteria