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Principality Building Society mortgage review

Our Principality Building Society mortgage review combines customer feedback with expert deal analysis to reveal whether the lender is worth considering next time you apply for a mortgage.

In this article
Principality mortgage customer ratings What kinds of mortgages does Principality offer? Does Principality offer the best mortgage deals? Interest rates on Principality mortgages How much could I borrow from Principality?
Can I make overpayments? How can I contact Principality? Principality mortgage eligibility What Principality mortgage customers say

Principality mortgage customer ratings

Mortgages
Principality Building Society review
Which? Customer Score
Joint 2nd out of 25 mortgage lenders
76%
Which?'s rating for customer satisfaction, based on feedback from real customers. The score is made up of a customer's overall satisfaction with the brand, and how likely they are to recommend that brand.
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The table below shows how Which? Recommended Provider Principality performed in our latest mortgage satisfaction survey, from application process to value for money.

Customer rating for: Star Ratings
Customer service

5 out of 5

Application process -
Value for money

4 out of 5

Keeping you well informed

5 out of 5

Clarity of statements

5 out of 5

Transparency of charges

4 out of 5

Query and complaint handling

5 out of 5

Ability to overpay or underpay mortgage

4 out of 5

Online access

3 out of 5

 

Star ratings based on a June 2019 Which? survey of 3,574 members of the general public, in which 40 people told us they had their mortgage with Principality Building Society. Where no rating is given the sample size was too small.

What kinds of mortgages does Principality offer?

Mortgages from Principality are only available for properties in England and Wales.

When we checked in September 2019, there were only 42 mortgages available from Principality - a relatively small number compared to other lenders.

Most mortgages from Principality were fixed-rate mortgages, meaning your interest rate is guaranteed to stay the same for a set number of years. Fixed-rate deals were available for two, three and five years.

There were also a small number of two-year discount deals available.

Does Principality offer interest-only mortgages?

Yes; the most you could borrow is 50% of the property’s value with a residential interest-only mortgage.

Does Principality offer the best mortgage deals?

Which? analysis has found that Principality offers more cheap mortgages than the average lender.

In order to work this out, our experts analysed thousands of mortgages over a four-week period in August 2019. They compiled a total of 208 ‘top-10 cheapest deal’ tables based on a variety of borrowing scenarios, and counted how many times each lender featured in a table.

The average number of times a lender made it into a table was 15, while Principality featured 22 times. (Data source: Moneyfacts.)

 

Interest rates on Principality mortgages

When we checked in September 2019, the average interest rate of a two-year fixed-rate mortgage from Principality was 2.17%, lower than the industry average of 2.77%.

How much could I borrow from Principality?

Below we’ve outlined how much you could borrow from Principality, in relation to the percentage of the property’s value.

Maximum loan amount Loan-to-value
£350,000 90-95%
£500,000 75-90%
£650,000 65-75%
£750,000 65%

If you want a 95% mortgage from Principality, you'll need to live in Wales or certain postcode areas in Shropshire, Herefordshire or Cheshire.

For new-build homes, you could borrow up to 90% of the property’s value.

Parental Assisted Mortgages

If you applied for a Principality mortgage with one of your parents, you might be able to borrow a higher amount than if you applied by yourself.

With a Parental Assisted Mortgage, Principality will look at your parents' income and spending, as well as your own, to decide how much to lend you.

Can I make overpayments?

Yes, you can overpay up to 10% of however much the remaining balance was on 1 January that year.

If your mortgage has any Early Repayment Charges (ERCs) these will only apply to any amounts you overpay above 10% in a year.

How can I contact Principality?

Principality can be contacted on 0330 333 4000.

Its website is principality.co.uk.

Principality mortgage eligibility

Flats and leasehold properties

If you’re applying for a mortgage on a leasehold property, there must be at least 85 years left on the lease at the time you apply.

For flats you can only borrow from Principality if the block isn’t more than six storeys.

Buy-to-let mortgages

Below we’ve outlined how much you could borrow on a buy-to-let mortgage from Principality, in relation to the percentage of the property’s value.

Maximum loan size Loan-to-value
£750,000 60%
£500,000 75%

You’ll need to have at least £20,000 in annual income to be eligible for a buy-to-let mortgage. Alternatively, if you’re applying with another person, your joint income must be at least £30,000.

What Principality mortgage customers say

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