Key Information
- Loans from £30,000 up to £300,000
- You pay the monthly interest, so the outstanding balance doesn’t increase
- We’ll lend up to a maximum of 50% of the property valuation, as assessed by an independent valuer or purchase price (whichever is lower)
- The amount borrowed won’t decrease unless you make payments over and above your usual interest payments
- For people aged 55 and over, no maximum age
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 our Mortgage Advisers for further details).
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).
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 your circumstances. Any existing financial commitments will be taken into consideration when calculating affordability.
Guarantor Mortgages are available - please read the section about specialist mortgages for all the details.
We offer a range of competitive interest rates to choose from. Check our interest rate pages for details.
- 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 you apply, we’ll need confirmation that you have plans in place to pay off your mortgage at the end of the term and we’ll ask you about your plans occasionally while you have a mortgage with us. Examples of these plans are normally endowment policies; stocks and shares ISAs; pension lump sums; and second/investment properties
A Standard Security (Scotland) / First Legal Charge (England) will be taken over the property being purchased 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 you have, 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, you will need to pay a charge equivalent to 3% of the outstanding balance amount in year 1 and 2 and 2% in year 3.
- For our 5-year mortgage, the early repayment 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 you move to Standard Variable Rate and choose to repay the mortgage. However, there will be certain redemption fees that will need to be paid (see our Details of Charges leaflet for more information).
You’ll need to provide evidence that buildings insurance for the property is in place before we can release funds.
How long does it take to arrange a Retirement Interest-Only Mortgage?
It usually takes about eight weeks for you to get your money from when we receive your application. If the mortgage is to provide you with a cash sum, this will be paid to you via your legal adviser.
How can I pay my mortgage?
The easiest way to pay is by direct debit each month. The form for this is included with your mortgage application.
We’ll set up the direct debit with your bank and collect payment each month on a set date.
You can also make payments by standing order or regular transfers from a savings account.
What if I want to move home later on?
If you move home and want to transfer this mortgage to a new property, you can do this if the application satisfies our normal lending criteria. If the new property is of a lower value, you may be required to repay part of the outstanding mortgage balance.
What if my circumstances change?
If you want someone else to move into your home with you, for example a member of your family, you must obtain the permission of Scottish Building Society before they move in. Similarly, if you wish to change the ownership of your home from single to joint (for example, if you were to marry), the mortgage may become repayable. Scottish Building Society will assess each change of circumstance individually.
What happens if I decide I don’t want the mortgage anymore?
If for any reason you no longer want the Retirement Interest-Only Mortgage, you can repay the amount you owe to the Society at any time. There could be a charge for early repayment (see Early Repayment Charges above). You should let us know if you plan to move, or have moved, into long-term care. It’s your estate executor’s responsibility to inform us of your death.
What if I want to borrow more money in the future?
If your income and/or the value of your home goes up significantly, we’ll consider lending you more in the future.
Could my tax position or entitlement to benefits be affected?
A cash lump sum could affect your tax liabilities so it’s a good idea to get more information and/or advice on tax issues before taking out a Retirement Interest-Only Mortgage.
The law relating to taxation could change in the future and you can contact HM Revenue & Customs to check how your tax position may be affected.
A cash lump sum could also affect your entitlement to welfare benefits (such as pension credit and housing benefit) depending on your financial circumstances.
You should contact the Department for Work & Pensions or the Citizens Advice Bureau if you need to talk through any welfare benefits issues in more detail.
Legal Advice
Scottish Building Society require customers’ solicitors to complete a Later Life Certificate, or a Retirement Interest-Only Certificate if the application is for a Retirement Interest-Only mortgage. Scottish Building Society does not cover the cost of any work associated with this.
Legal advice associated with RIO mortgages may attract additional costs over and above solicitor standard charges.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
We're here to help
You can visit us in our Relationship Centres, or call us on 0333 207 4007. Our lines are open 9am - 5pm Monday to Friday (10am - 5pm Wednesday). Calls may be recorded and/or monitored.