Scottish Building Society offers a Retirement Interest-Only Mortgage for people aged 55 and over who are looking to release some equity from their home.

Key Features

Suitable for:

Homeowners over the age of 55 looking to release equity from their property in Scotland.


Mortgages are available for owner occupied residential properties. All mortgages are subject to a suitable property valuation.

Maximum Loan:

We will lend up to a maximum of 50% of the property valuation or purchase price (whichever is lower). The minimum loan size is £30,000 and the maximum is £300,000.


The minimum age at time of application is 55. For joint applications, both applicants must be aged at least 55. There is no maximum age.

How much can I borrow?

All applications are treated on an individual basis and based on affordability.

The maximum lend is generally determined by the applicants income, which can include their pension. As a guide we will lend up to the following:

  • Single Applicant – 4.5 X income OR
  • Joint Applicants – 4.5 X first income plus 1 X second income OR 3.5 X joint income

Any existing financial commitments will also be taken into consideration when affordability is calculated. Please note in joint applications the last survivor needs to be able to demonstrate serviceability.

If the property is in joint occupancy we will not lend in a sole name. Both occupiers should be party to the mortgage and fit the age and income requirements.

Remortgage Incentives:

Refund of 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.

Contribution to Legal Fees: The Society will contribute £250 towards the cost of the borrower’s legal costs. (Customer to use own solicitor).


Our Retirement Interest-Only Mortgage is set up on an Interest Only basis with no repayment vehicle being required. The mortgage is normally not repayable until the borrower (or the last survivor if it is a joint application) has died, moved into long term care, sold or moved home.

Each month you are required to make a payment to cover the monthly interest on the mortgage. By doing this the capital balance of the mortgage will never increase.


A first charge will be taken over the property being purchased or remortgaged as security for the mortgage lending.

Flexible Features:

The borrower may make overpayments on the mortgage to reduce the capital. If this is during the initial period where Early Repayment Charges apply 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 5 years of the mortgage.

Once any period where Early Repayment Charges are applicable has elapsed the borrower may make capital reductions without limit or penalty to reduce the balance of the loan.


Buildings Insurance must be arranged prior to funds being released.


Contact Us

For new savings or mortgage enquiries, call us today on

0333 207 4007

Lines open 9-5 Mon to Fri (10-5 Wed). Calls may be recorded and/or monitored.

Existing Member Enquiries

To talk to us about an existing savings or mortgage account, contact your local office

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