Suitable for:
Residential property owners in Scotland who want to change mortgage provider or raise additional capital for reasons such as home improvements or consolidation of existing personal debt.
Loan amount and loan to value
For loans up to £400,000 you can borrow up to 90% of the property valuation.
For loans up to £600,000 you can borrow up to 80% of the property valuation.
For loans up to £800,000 you can borrow up to 70% of the property valuation.
For loans up to £1,000,000 you can borrow up to 60% of the property valuation or purchase price (whichever is lower).
Maximum loan size is £1,000,000.
Property
Available for owner occupied residential properties in Scotland. All remortgages are subject to a suitable property valuation.
Applicants must be at least 18 years old on application and normally not more than 85 at end of mortgage term.
Minimum mortgage term is 5 years and maximum term is 40 years.
All mortgage applications are based on affordability.
- For loans less than 80% of the property valuation or purchase price (whichever is lower) we’ll lend up to:
Single applicant: 4.5 x income
Joint applicants: Main income x 4.5 plus second income x 1 OR Joint income x 4 - For loans over 80% of the property valuation or purchase price (whichever is lower) we’ll lend up to:
Single applicant: 4 x income
Joint applicants: Main income x 4 plus second income x 1 OR Joint income x 3.75
Any existing financial commitments will be taken into consideration when we calculate affordability
- Capital and Interest
- Interest only - available up to 75% of the property value or purchase price with a maximum loan size of £350,000. When applying, we’ll need confirmation that plans are in place to pay off the mortgage at the end of the term and we’ll ask about these plans occasionally throughout the mortgage term. Examples of these plans are normally endowment policies; stocks and shares ISAs; pension lump sums; and second/investment properties.
Remortgage incentives are available in the following circumstances:
• You have a mortgage that is being moved from an existing lender to Scottish Building Society
• You own the property outright with no outstanding mortgage.
The Remortgage incentive includes a free valuation for mortgage purposes as well as one of the following two options:
• Option 1 – Unless one of the situations listed below apply, we’ll provide a Free Basic Legal Service which means you’ll have no solicitor’s fees to pay. The solicitors we use will act only for Scottish Building Society in the transfer of the mortgage.
• Option 2 - £250 contribution towards legal costs if you choose your own solicitor, or where restrictions apply to free basic legal service
If any of the following applies to your mortgage application with us, you must select your own solicitor. In these cases, option 2 listed above will apply.
• You own the property outright with no outstanding mortgage.
• Your application involves repayment of unsecured debts.
• Your mortgage product is a Retirement Interest-Only remortgage application
• The transaction involves a solicitor to act on behalf of Scottish Building Society and yourself. We’ll make you aware as soon as we possibly can when it is assumed you’ll require additional legal work which does not form part of the free legal option.
Check our current interest rates.
Capital raising is allowed up to 90% of the property value for reasons such as divorce settlements, deposits for other properties or home improvements.
If raising capital for debt consolidation, the maximum is 80% of the property value.
To raise funds on a for business purposes, please speak to your Business Development Manager.
A Standard Security (Scotland) / First Legal Charge (England) will be taken over the property as security for the mortgage borrowing.
If you make overpayments of 10% or more of the loan amount in any 12 month rolling period during the initial period, and depending on which mortgage your customer has, the charges apply as follows:
• For our 2-year mortgage, the charge will be equivalent to 3% of the outstanding balance amount in year 1, and 2% in year 2.
• For our 3-year mortgage, the charge will be equivalent to 3% of the outstanding balance amount in year 1 and 2 and 2% in year 3.
• For our 5-year mortgage, the charge will be:
o 5% of the outstanding balance in the 1st year
o 4% of the outstanding balance in the 2nd year
o 3% of the outstanding balance in years 3 & 4
o 2% of the outstanding balance in year 5
After the initial period, the Society will not make an early repayment charge if the mortgage is on Standard Variable Rate and is repaid. However, there will be certain redemption fees that will need to be paid (see our mortgage product rates leaflet for more information).
We’ll need evidence that buildings insurance for the property is in place before we can release funds.
Check our Packaging Requirements for full details of documents needed for mortgage applications