AFHOS owners

Summary of fees and charges

There are charges payable in a number of circumstances, as set out below:

Reason for charge/fee	One off charge	When due	Annual charge
Sub-letting	£65		£200
Move away from base	£65		£200
Remortgage	£65
Part-Redeem loan	Valuation fee
Fully redeem loan	Valuation fee
Improvements	£65
Change of name(s)	£65
Selling	Valuation fee
Porting (moving house and taking the loan)	£1500 plus valuation fee

Please note that these are the charges payable to Swaythling Housing. You should remember that you will have other fees to pay in these situations as well (e.g. solicitors, estate agents, letting agents, mortgage company fees etc).

How are the fees calculated on the scheme?

There are no charges on the equity share for personnel as long as they remain in the Armed Forces. Please click here for details of the fees charged upon leaving the service.

The example below shows how fees are calculated if and when they become due. The table below illustrates how this would work on a 30% Second Charge of £60,000.

Start of year	Government assistance	Fee percentage	Annual fee due	Estimated monthly payment
1	£60,000	n/a	n/a	n/a
2	£60,000	2% below SVR*	£1,500**	£125
3	£60,000	1% below SVR	£2,100	£175
4	£60,000	SVR of the day	£2,700	£225
5	£60,000	1% above SVR of the day	£3,300	£275
6	£60,000	2% above SVR of the day	£3,900	£325
7	£60,000	2% above SVR of the day	£3,900	£325

* SVR is the Standard Variable Rate of Royal Bank of Scotland at the time **Example assumes SVR of 4.5%

At the start of year six the monthly fee will have risen to £325. This is to encourage buyers to redeem the Second Charge and to move to full ownership or to sell their property and repay the Second Charge. The reason for introducing the fees is because the scheme is intended to benefit those serving in the forces.

The payment of fees does not contribute towards repaying the Second Charge. If a buyer partially repays or wants to make full repayment of the Second Charge, any fee arrears must be repaid at the same time.

« Back to AFHOS owners

Submit an application online now!