Mortgages FAQs

Everything you need to know about mortgages with CCU

Anyone aged 18 or over who lives or works in East of Scotland, employed by one of our Select Partners or a member of Community The Union, can apply for a mortgage from Capital Credit Union. As a condition of any approved loan, non-members will be required to become a member of Capital Credit Union and as such to meet and maintain minimum membership requirements in terms of savings.
At present we only offer our Variable Rate Mortgage Products. We are currently reviewing our mortgage range with a view to introducing additional mortgage products soon.
Currently, you can apply for a joint mortgage with us as a couple. However, both of you need to become members of Capital Credit Union.

For our current variable rate products, the maximum loan to value which we will currently consider is 95% of the value or the purchase price. The exception to this would be ‘right to buy’ purchases where we will consider lending 100% of the purchase price.

You can take a mortgage for up to 25 years, and you need to be aged 69 or under to apply.

We don’t front load interest on your mortgage. Instead, interest on Capital Credit Union mortgages is calculated on a daily reducing balance basis. As a result, with each repayment you make, the interest which has accrued since your last repayment is cleared and your mortgage balance reduces. Interest will then be calculated on the reduced balance. As your mortgage progresses, your outstanding balance will continue to reduce and you will therefore pay less interest. We believe this to be the fairest way to charge interest.

We charge a one–off administration fee for our variable rate mortgage products – this will be discussed at your initial meeting with your IFA. This can be added to the loan balance or paid upfront. The fee is £500 for further advance or purchase applications and £1,050 for re-mortgage applications.

As secured loans, you may also incur valuation and legal fees when organising your mortgage. We can provide further information on these during the mortgage process.

Yes, our variable rate mortgage can be repaid in full at any time, but within the first two years there is a penalty of 1% or £500, whichever is lower. You can also pay extra to reduce your outstanding mortgage balance at any time.

Yes, first time buyers are welcome to apply for a mortgage and we will consider loans for up to 95% of the value of the property.

Yes, you may submit an application for additional borrowing at any time. Any additional loan requests will be subject to our normal lending criteria.
Yes, for your protection, mortgage holders are required to obtain life assurance for the full value of the loan. You are free to choose your own life assurance provider. Buildings and contents insurance for the property is also required. Again you are free to choose your own insurance provider. We also highly recommend that you obtain Mortgage Payment Protection Insurance.
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