Suitable for:
People buying or moving home/residential property throughout Scotland or looking for help to get a second residential mortgage.
Loan amount and loan to value
Loans from £30,000 up to £1,000,000
For loans up to £400,000 - borrow up to 95% of the property valuation or purchase price (whichever is lower).
For loans up to £600,000 - borrow up to 80% of the property valuation or purchase price (whichever is lower).
For loans up to £800,000 - borrow up to 70% of the property valuation or purchase price (whichever is lower).
For loans up to £1,000,000 - borrow up to 60% of the property valuation or purchase price (whichever is lower).
Property
Residential mortgages are available for owner occupied residential properties. All mortgages are subject to a suitable property valuation.
For property purchases in Scotland, we can normally use the property valuation contained in the sellers' Home Report provided that it’s no more than 3 months old (please speak with your BDM for further details).
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
Our flexible underwriting means we assess all applications on an individual basis. The amount we’ll lend will depend on circumstances. Any existing financial commitments will be taken into consideration when calculating affordability.
We also provide additional mortgage borrowing. If your client’s main mortgage is less than the agreed maximum amount they could borrow, you can apply for a Further Advance once they’ve had the mortgage with us for six months.
- Capital and Interest
- Interest only - available up to 75% of the property value or purchase price (whichever is lower) 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.
Guarantor Mortgages are available - please visit the Guarantor Mortgage page for details.
Check our current interest rates.
Security
A Standard Security (Scotland) / First Legal Charge (England) will be taken over the property being purchased as security for the mortgage borrowing.
Early Repayment Charges
If overpayments of 10% or more of the loan amount are made in any 12 month rolling period during the initial period, and depending on which mortgage your customer has, the following charges will apply:
• 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 Details of Charges leaflet for more information).
Where Early Repayment Charges apply to any of our mortgages, we may allow overpayments (normally up to 10% of the outstanding balance in any rolling 12 month period) without penalty.
Once any period where Early Repayment Charges are applicable has ended, capital reductions can be made without limit or penalty to reduce the balance of the mortgage.
Insurance
We’ll need evidence that buildings insurance for the property is in place before we can release funds.
Moving house
This mortgage can be transferred to a new property if the application satisfies our normal lending criteria.
Packaging requirements
Check our Packaging Requirements for full details of documents needed for mortgage applications