Mortgages for people buying or moving home.
Purchasers of residential property throughout Scotland.
(Some first time buyers may find our Guarantor Mortgage more suitable).
Mortgages are available for owner occupied residential properties. All mortgages are subject to a suitable property valuation, the minimum being £50,000.
For property purchases in Scotland, we can normally use the property valuation contained in the sellers’ Home Report as long as it is no more than 12 weeks old.
For loans up to £300,000 the applicant can borrow up to 90% of the property valuation or purchase price (whichever is lower).
For loans up to £350,000 the applicant can borrow up to 80% of the property valuation or purchase price (whichever is lower).
For loans above £350,000 the applicant can borrow up to 70% of the property valuation or purchase price (whichever is lower).
Maximum loan size is £500,000.
(If applicant is a professional please refer to our Professional Mortgages)
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 or purchase price (whichever is the lower) 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.
- Capital and Interest OR
- Interest only – available up to 75% of the property value or purchase price (whichever is lower) with a maximum loan size of £350,000. We will ask for confirmation 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).
A first charge will be taken over the property being purchased as security for the mortgage lending.
Lending over 80%
For lending above 80% of the property purchase price or valuation the Society will cover the cost of a Higher Lending Charge.
Applications must fit the Society’s Lending Policy and also meet the following specific requirements:
- The maximum mortgage is 4 x prime income plus 1 x 2nd borrower’s income or 3 x joint incomes.
- The Society is required to obtain employer’s references including a previous employer’s reference if the applicant has been in the current employment for less than 6 months.
- If an existing mortgage cannot be verified by the credit check the Society is required to obtain bank/mortgage statements, covering a full 12 month period prior to application, or a lender’s reference.
- Where the applicants are living in rented accommodation the Society is required to obtain bank/rental statements, covering a full 12 month period prior to application.
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