Mortgages. A mortgage from the Scottish. Opens lots of new doors

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1 Mortgages A mortgage from the Scottish Opens lots of new doors

2 Moving home made easy In branch experts

3 Whether you re an existing customer or you re new to the Scottish, we value your business and we aim to make arranging your mortgage with us as simple and straightforward as possible. Talk to us about your mortgage before you start house-hunting. Then you ll know exactly how much you can afford. You don t have to rush to find your ideal home you ll just feel more prepared when you do. And it means you can move quickly when you find the right property. Once you ve found your home, you can instruct a solicitor to start the conveyancing process. Your solicitor will take care of all the legal requirements including dealing with the seller s solicitor and the Scottish, as your mortgage lender. Your solicitor will handle the completion of the purchase and the handing over of the keys. And then you can move in!

4 We have all sorts of customers Are you a first time buyer? We ll guide you through the buying process step-by-step. We ll let you know how much you can borrow, and give you expert help and advice so you get the right mortgage for you. To help you budget efficiently and keep you in control, we ll also give you details of what your monthly payments will be. Are you moving to a new home? When you re ready to move on, we can advise on the mortgage choices that suit your new circumstances, including borrowing more money if you need to. Want to borrow more? We may be able to arrange a further loan against your current home, depending on the loan to value of your existing mortgage. Looking to Remortgage? If you have reached the end of your current deal, or you d like to switch from your current lender to the Scottish, our range of competitive mortgages can help your money go further. Need a specialised mortgage? Some mortgages require specialist knowledge such as Lifetime Mortgages, Guarantor Mortgages and Self Build Mortgages. At the Scottish we ve been arranging mortgages for our customers for over 165 years, and our mortgage lending expertise includes all these options.

5 And a mortgage to suit everyone Discounted Variable Rate Mortgage The discount is on our standard variable rate (which is set by us) for an agreed period of time. This rate can change, so your payments can go up or down at any time. A great choice if you want to: Save money during the discount period with a reduced rate Make further savings from any rate reductions as you go along Fixed Rate Mortgage This mortgage offers a fixed rate for an agreed period of time. During this time your payments will stay the same, whatever happens to interest rates in general. A great choice if you want to: Know where you stand with fixed payments each month, for the duration of the fixed rate period Budget more easily and securely Not be affected by rate changes during the fixed rate period An early repayment charge may apply to specific products, which will be included in any mortgage quotation we give you. Standard Variable Rate Mortgage This is the Society s lending rate and will generally apply once a Discounted or Fixed Rate mortgage period comes to its end. The rate will vary which mean payments may go up or down at any time. A great choice if you want to benefit from: Saving money when the interest rate is reduced Having the flexibility of being able to take advantage of the latest mortgage offers

6 Specialist mortgages Self Build Mortgage The self build mortgage has been designed with flexibility in mind to cope with the varying build schedule required for exciting projects like these. The first instalment can be made available when you purchase the land and can be up to 80% of the plot value or purchase price whichever is lower. You then have the flexibility to negotiate instalments during the construction period, providing the outstanding loan is not more than 80% of the current valuation. The final instalment will normally be released when the property is completed, although this can be released prior to completion as long as the 80% limit is adhered to. We can provide you with a Self Building Costs Information form to help you in detailing all your projected expenses. Please ask for details. Buy to Let Mortgage If you want to buy or remortgage a property in Scotland to rent out, our Buy to Let mortgage could be ideal. It s self-financing, which means that the rental you generate from the property must be more than 130% of the monthly mortgage payment. You ll also need a non-property related income of at least 25,000. Guarantor Mortgage This type of mortgage is popular with students or graduates who are keen to get on the property ladder and have a parent able to guarantee the mortgage. The guarantor must prove that they have enough disposable income to afford the monthly payment. This type of product enables borrowing to exceed the standard affordability criteria, but the guarantor is held responsible if you can no longer afford to pay what you owe. This type of mortgage offers a real investment opportunity for both student and parent. Guest House Mortgage Our guest house mortgage allows you to borrow up to 75% of the purchase price or value whichever is lower. A full business plan, including projected income is required. Lifetime Mortgage Designed for applicants aged 65 or over, the Lifetime Mortgage allows you to purchase or remortgage a property up to a maximum of 35% of the value. Interest is paid monthly and pension income must cover it. The capital is repaid on death or if you move house or go into a care home.

7 YOUR QUESTIONS ANSWERED Q How much can I borrow? A A mortgage is a big financial commitment. As a responsible lender, we think carefully about the amount you can borrow and the type of mortgage that will work best for you. Your income and outgoings are important in the decision-making process, and will help us determine how much you can borrow. That s why we ll ask you to provide payslips and bank statements to confirm your income. You ll also need to think about your other financial commitments, as well as the impact any future rise in interest rates would have on your finances. Should you decide to proceed, we will allocate a qualified mortgage adviser to take you through the whole process. They will be able to advise - through information you provide at a face-to-face or telephone interview - which product best suits your requirements. We will ask for your consent to research your personal financial data to help us assess your mortgage application so we can complete it as efficiently as possible. Q What do I need to bring with me when I apply for my mortgage? A You ll need to bring documentation which allows us to confirm your identity. This can include a passport, a driving license, recent payslips and bank statements. We ll also need information about the property you want to buy, including valuation details or Home Report, and how much your deposit will be. Q Are there any age restrictions? A You must be at least 18 years old to apply for a mortgage, and your mortgage term should normally end before you reach 70. Q What happens after I ve applied for a mortgage? A The next step is for us to make you a mortgage offer. Before we can do this, we ll need a valuation of the property you want to buy. Most homes for sale require the seller to produce a Home Report, which is given to prospective buyers. This contains a survey report featuring information on the condition and valuation of the property. Where there is no Home Report, we will instruct an approved valuer to carry out a Lender s Valuation. We ll need to charge for this. Conclusion of Missives and settlement is the final stage. This means that the buyer and seller are both committed to the sale. Your solicitor will keep in touch with you throughout the whole process. When the Solicitor has paid the agreed price and has received the required legal documents, you can move in! Q Anything else I need to think about? A You will be required to take out Building Insurance. We can help you arrange Buildings and Contents cover. Q What happens if I m finding it difficult to make my mortgage payments? A If you have financial problems or anticipate having difficulty making your mortgage payments for any reason please let us know as soon as possible. We will do whatever we can to help you. The sooner we know about any difficulties the sooner we can advise and help.

8 A choice of ways to repay your mortgage Capital & Interest Repayment Mortgage With this method of repayment, your monthly mortgage payment covers the interest on the loan and also gradually pays off the amount you have borrowed. Provided you do not miss any payments you will have repaid the entire loan by the end of the agreed term. Interest Only Mortgage With this method of repayment you are paying only the interest on the loan. This will not pay off any of the capital element of your mortgage. To pay off the capital the amount of money borrowed you ll need a separate lump sum of money. An interest only mortgage involves an element of risk, as it up to you to make sure you have the money to pay off the loan at the end of the agreed term. Sale of the property is not a suitable repayment vehicle in most circumstances. You can choose Capital & Interest, Interest Only or a combination of the two. We charge interest on a monthly basis on all mortgages. Repayment terms The minimum mortgage term available with the Scottish is 5 years, and the maximum mortgage term is 40 years. If you select a term that takes the repayment of the mortgage beyond your expected retirement age, you must still be in a position to afford your mortgage repayments. We will request details of your expect income on retirement. Please be aware that the longer the term of the mortgage, the more interest you will pay. Making your repayments Payment is normally by direct debit each month, and you ll find a form for this with your mortgage application. We will make the necessary arrangements to collect the agreed payment from your account each month. If you prefer, you can also make payments by standing order, regular transfer from a savings account or over the counter at any Scottish Building Society branch or agency.

9 If you re looking for a mortgage, you ll feel at home with the Scottish Buying a home is a big decision. And choosing a mortgage is one of the most important moves you ll ever make. At the Scottish we understand the excitement as well as the touch of nerves this can bring, especially for first time buyers. That s why our staff do all they can to make the whole process as easy as possible for you. We ve mortgages to suit everyone, whether you re a first time buyer, looking to move house, buying a property to rent, or switching your mortgage from another lender. We re here to help you get the mortgage that s perfect for you. We ll give you all the information you need, and keep everything simple and straightforward. So, if you re looking for a competitive mortgage from a name you can trust, the Scottish could be right up your street. 5 great reasons to choose a mortgage from the Scottish A wide range of mortgages Competitive interest rates Local in-branch mortgage specialists Quick lending decisions An experienced mortgage provider, with a name you can trust

10 Financial health When you borrow from the Scottish, we may give details of your account and how you manage it to credit reference agencies. If you do not make payments on time or in full, this may be recorded by the credit reference agencies. You have right of access to your personal records held by credit reference and fraud agencies and we will supply their details on request. Please write to: Freepost RLYC-AAGE-YURH, Scottish Building Society, SBS House, 193 Dalry Road, Edinburgh EH11 2EF. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. To find out more about any of our mortgages Pop into your local office to talk to one of our qualified mortgage advisers Or call them on Or visit our website Proud Supporter of ML.0815 Scottish Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Register No ). Member of the Building Societies Association and the Council of Mortgage Lenders.