This facility is available on all our front line products with exception of BTL, Guesthouse and Lifetime.
For full details of all interest rate options currently available please see our interest rate information pages.
Our specialist mortgage advisers can guide you through the application process and help make everything as smooth as possible.
To discuss our products in more detail please visit your nearest branch or call us on 0345 600 4085 and speak with one of our mortgage advisers.
Key Features of our Guarantor Mortgage:
Prospective borrowers looking to get on the property ladder but require some parental support.
The society will consider guarantor mortgages in certain circumstances noted below:
|Property:||Mortgages are available for owner occupied residential properties. All mortgages are subject to a suitable property valuation. Minimum valuation £60,000.|
|Maximum Loan:||We will lend up to a maximum of 90% of the property valuation or purchase price (whichever is lower).
The minimum loan size is £50,000 and the maximum is £300,000.
|Term:||Normal maximum is to age 70 but it will be necessary for the guarantor(s) to demonstrate the necessary level of sustainable income for the term of the mortgage e.g. the Society will check the guarantor can service the loan into retirement if the proposed term runs past the guarantors normal retirement age.|
|How much can I borrow||All applications are treated on an individual basis and based on affordability. The maximum we will lend is generally determined by income, which can include pension.
Any existing financial commitments will also be taken into consideration when affordability is calculated.
Where the borrower is a 'working child' affordability must be shown from the income of the borrower and the monthly support from the guarantor.
Where the borrower is a 'non-working child' affordability must be demonstrated by the guarantor for all commitments and household expenses for both the borrower(s) and the guarantor(s).
In the case of 'residing spouse' affordability is to be assessed using the earnings of the guarantor.
|Guarantors:||We would expect both parents who reside together to act as guarantors for their child.
The parent(s) acting as guarantor must not be older than 65 at the time of the application.
The main guarantor must have a minimum sustainable income of £30,000 per annum.
The guarantor(s) must be property owners and have their main residence in the UK.
|Types of Guarantee||
There are two types of guarantee:-
|Interest Rate Options:||Please see our interest rate information pages for full details.|
|Remortgage Incentives:||Not available on remortgage|
|Security:||Title to the property must be in the name of the applicant - not the guarantor.|
|Higher Lending Charge||
Where a Higher Lending Charge is applicable this can generally be added to the mortgage, if you wish, providing total lending does not exceed 95%.
|Flexible Features:||You may make overpayments on your mortgage to reduce the capital. If this is during the initial period where Early Repayment Charges apply you may repay up to 10% of the capital balance of the mortgage each year without penalty.
Once any period where Early Repayment Charges are applicable has elapsed, you may make capital reductions without limit or penalty to reduce the balance of the loan.
|Insurances:||Buildings Insurance must be arranged prior to funds being released.
Our advisers can provide competitive quotations for buildings insurance and also life cover. You are not required to arrange these or any other insurances through Scottish Building Society.