Standard Criteria For Mortgages

As a responsible lender, Scottish Building Society will only consider mortgage applications on a ‘fully advised’ basis, with a full assessment of both the applicants’ past credit record, and their ability to meet current and future financial commitments – including their mortgage payments and other related expenditure.

The following criteria are the minimum requirements that must be satisfied for applicants to be eligible for an owner-occupier mortgage. Any lending to applicants outside the standard criteria requires prior approval. We would recommend that any cases out with our standard criteria are discussed in full with your Business Development Manager prior to submission.

Maximum Number of Borrowers on an individual mortgage

LTV

Maximum Number of Borrowers

Maximum Incomes for Affordability Calculation

<80%

4

3

>80%

4

2

Minimum/Maximum Mortgage Term Age Criteria

  • The minimum age of all parties to a mortgage at inception is 18, with the exception of Retirement Interest-Only Mortgages, where the minimum age of all parties to the mortgage is 60, and the Professional Mortgage where the minimum age is 21 for the applicant.
  • The maximum age at the end of the mortgage term is normally 85. If the applicant will be in excess of their expected retirement age at the end of term then affordability using retirement income must be proven. Unless confirmed as an earlier date the default age for retirement is age 70.
  • There is no maximum age requirement on Retirement Interest-Only Mortgage cases.
  • The minimum mortgage term is 5 years and the maximum term is normally set in relation to the borrowers’ expected retirement date, providing the term does not exceed 40 years.
  • There is no maximum term applicable to Retirement Interest-Only mortgages.

Employment Status

  • Employed applicants must be in permanent employment and have been employed with their current employer  for at least 6 months or, if less than 6 months, have been employed immediately before for a minimum of 12 months.
  • Self-employed borrowers (including company directors) must have been conducting their business for a period of at least 2 years and be able to provide evidence of income for that period, together with a projection/estimate of income for the coming 12 months. (Normally SA302 with overview which the client can obtain from Inland Revenue.)
  • Contractors the Society will not lend in excess of 80% LTV where income is derived from a fixed term contract other than for Medical Professionals e.g. doctors in the NHS.

Contractors on a ‘Contracts for Services’ basis will be treated similarly to self-employed applicants in that:

  1. Engaged in contracts for at least 3 years.
  2. Income evidenced by last 3 years tax assessments with income to have been level or progressively rising.
  3. Last 6 months SC60s/715 vouchers to be provided.

 

FOR INTERMEDIARY USE ONLY

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