Scottish Building Society offers a Buy to Let Mortgage for people buying or re-mortgaging a property to rent out.
Purchasers of residential property throughout Scotland to rent out.
Applicants must be a member of the Society or in the process of taking a residential mortgage with the Society.
The investment property must be located in Scotland.
All mortgages are subject to a suitable property valuation the minimum being £100,000. For property purchases in Scotland, we can normally use the property valuation contained in the sellers’ Home Report provided that it is no more than 3 months old.
Maximum loan on a single property is:
• £250,000 at 75% LTV
• £300,000 at 65% LTV
Minimum loan on a single property is £50,000.
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 25 years.
How much can I borrow?
Maximum loan 75% of lower valuation or purchase price.
- Rental income must be 150% or more of the monthly mortgage payment calculated at 2% above the BTL reversionary rate applicable at the time of the mortgage application. However the Society may accept coverage of less than 150% if affordability can be proven for all expenditure when earned income is taken into account.
- Rental income must be verified by the valuer or by a letter from a reputable letting agency addressed to the Society
- Minimum income (non-property related) for at least one applicant must exceed £40,000
- Maximum number of bedrooms must not exceed 4
- A maximum of 3 BTL mortgages with the Society for any one individual, limited to an overall exposure of £500,000. This would also preclude joint applications from having 2 each in sole names and a further mortgage in joint names.
- Maximum BTL portfolio for any one individual is 3 properties. As stated above all 3 may be with the Society
- The Society does not lend on Houses in Multiple Occupation (HMOs)
- The Society will not consider debt consolidation on a BTL Remortgage.
Please see Interest Information pages on the website.
- Capital and Interest OR
- Interest Only. (Sale of the rental property as the repayment vehicle is accepted.)
Valuation costs: A valuation of your property will be required as part of the mortgage application.
The cost of this will be met by the Society in line with our scale of fees. Any other valuation requirements should be discussed with the valuer direct and the customer will have to meet the additional cost.
Free Basic Legal Service: The solicitor we choose will act solely for the Society in the transfer of the mortgage and any additional legal services of advice you may require will be at your own expense.
If you wish to use your own solicitor instead, the Society will contribute £150 towards your legal costs.
NB: this incentive is not available to customers who are deemed unencumbered and looking to raise money.
A first charge will be taken over the property being purchased as security for the mortgage lending.
Overpayments of up to 10% of the mortgage advance can be made per annum. An early repayment charge, equivalent to 3% of the total amount overpaid, will apply if overpayments exceed 10% of the loan amount in any 12 month rolling period during the first 3 years of the mortgage.
Buildings Insurance must be arranged prior to funds being released.
FOR INTERMEDIARY USE ONLY