Scottish Building Society can help if a borrower is looking to remortgage.
Existing owners of residential property throughout Scotland, who wish to change mortgage provider, or existing owners of residential property looking to renovate or extend (up to a maximum of 85% LTV).
Mortgages are available for owner occupied residential properties. All remortgages are subject to a suitable property valuation, the minimum being £50,000.
The property must have been owned for a period of six months.
For loans up to £300,000 you can borrow up to 90% of the property valuation. For loans up to £350,000 you can borrow up to 80% of the property valuation. For loans above £350,000 you can borrow up to 70% of the property valuation.
For remortgages, the minimum loan size is £30,000 and the maximum is £500,000. For Capital Raising refer to note below.
Applicants must be at least 18 years old on application and the maximum age at end of the mortgage term is normally 85.
Minimum mortgage term is 5 years and maximum term is 40 years.
How much can I borrow?
All mortgage applications are based on affordability. For loans up to 80% – As a guide we will lend up to:
- Main income x 4.5, plus second income x 1 OR
- Joint income x 3.5
For loans over 80% of the property valuation we will lend up to:
- Main income x 4 plus second income x 1 OR
- Joint incomes x 3
Any existing financial commitments will also be taken into consideration when affordability is calculated.
Free Basic Legal Service: When remortgaging to Scottish Building Society we will provide the borrower with a free basic legal service which means they won’t have any solicitor fees to pay. However, the solicitors we use will act only for the Society in the transfer of the mortgage and if the borrower requires any additional services these will require to be paid by them. If the borrower would prefer to use their own solicitors then the Society will contribute £150 towards the cost.
Refund of Valuation Costs: A valuation of the 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) up to £375. Any other valuation requirements should be discussed with the valuer direct and the customer will have to meet the additional cost.
Note – this package is not available to customers who are unencumbered in their home and looking to raise money.
- Capital and Interest OR
- Interest only – available up to 75% of the property value with a maximum loan size of £350,000. We will ask for evidence that the borrower has an appropriate repayment vehicle in place at the time of application as well as periodically throughout the life of the mortgage. Acceptable repayment
vehicles are endowment policies, stocks and shares ISAs, pension lump sums and second/investment properties. (Acceptable Repayment Vehicles).
Where there is an element of capital raising on a remortgage the maximum LTV is 85%. Capital raising up to 85% is allowed for purposes such as home improvements, divorce settlements and deposits for other properties.
If the capital raising is for debt consolidation, the maximum LTV is 80%, other than for existing borrowers with a good track record where a maximum 85% LTV may be considered. Debt consolidation for Buy to Let or Guesthouse mortgages will not be considered.
A first charge will be taken over the borrower’s property 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 in place prior to funds being released.
FOR INTERMEDIARY USE ONLY