Scottish Building Society offers guarantor mortgages for first-time buyers and retirement mortgages (with no maximum age limit) for over-55s. Arguably, there’s also a deal for everyone in between.
With all the lender’s mortgages, you’ll be put on a promotional rate for the first three years, before being switched to its standard variable rate.
Compare Scottish Building Society’s mortgage rates
Overall representative example If you borrow £178,000 mortgage over 25 years initially at 4.49% fixed for 60 months reverting to 7.99% variable for term. 60 monthly payments of £988.37 and 240 monthly payments of £1306.89. Total amount payable £373,335.80 includes loan amount, interest of £194,956, valuation fees of £0 and product fees of £0. The overall cost for comparison is 6.7% APRC representative.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
What types of mortgage does Scottish Building Society provide?
Fixed-rate mortgages. Scottish Building Society offers fixed-rate mortgage deals with a term of three years. The maximum loan-to-value is 90%, although you’ll get a lower rate if you stump up a bigger deposit. There’s a no-fee mortgage, although this comes with a higher rate.
Discount mortgages. These mortgages will be fixed at a specific percentage below the lender’s standard variable rate for three years. The maximum loan-to-value is 90%, although you’ll get a lower rate if you have a larger deposit. There’s a no-fee mortgage, although this comes with a higher rate.
Guarantor mortgages. In certain circumstances, the lender will offer the same mortgage deals to first-time buyers with a guarantor. This will improve their chances of being approved.
Professional mortgages. The lender offers 95% loan-to-value mortgages to qualified, registered and practicing doctors, dentists, accountants and lawyers. These are three-year discount or three-year fixed-rate mortgages. Once again, you’ll be offered a better rate if you can raise a bigger deposit.
Buy-to-let mortgages. A three-year discount mortgage is available for landlords looking to rent out their property. The maximum loan-to-value is 75%.
Guest house mortgages. A specialist three-year fixed rate or three-year discount deal is available for those looking to buy a guest house or bed and breakfast in Scotland.
Remortgages. Most of the above deals are available for those looking to remortgage. Scottish Building Society will pay your legal fees in this situation too.
Retirement interest only mortgages. If you’re aged 55 or over, you can apply for a retirement interest only mortgage which will allow you to release money from the value of your home. The minimum loan size is £30,000 and the maximum is £300,000.
Self-build and custom build mortgages. A specialist mortgage designed for those looking to build their own home in Scotland, or those renovating or extending their existing property.
How do I apply for a Scottish Building Society mortgage?
You can call 0345 600 4085. Telephone lines are open between 09.00 and 17.00 on weekdays (10.00 to 17.00 on Wednesdays) and Saturdays between 09.00 and 12.00.
The lender’s mortgage experts can walk you through the application process. You’ll need your personal details and detailed financial information to hand.
Approval will be based on the results of a credit check.
Eligibility criteria
To be considered for a Scottish Building Society mortgage, you must:
Be at least 18 years old.
Be no older than 85 at the end of the mortgage term (except with retirement mortgages).
Secure the loan against a property in Scotland.
The maximum amount you can borrow is £500,000. Mortgage terms range between 5 and 40 years.
Pros and cons of Scottish Building Society mortgages
Pros
Flexible mortgage options including retirement interest-only and self-build
Competitive interest rates
Specialist mortgage advisers on hand to guide you through the application process
Cons
Maximum borrowing amount limited to £500,000 (standard residential mortgages)
Mortgage fees apply
No option to apply online
Our verdict
Scottish Building Society offers mortgages to suit almost everyone. Whether you’re after a traditional residential mortgage or a more specialist option such as a retirement interest-only mortgage or self-build mortgage, Scottish Building Society offers it all. Just keep in mind that you’ll only be eligible if you’re buying a property in Scotland.
Frequently asked questions
You’ll need to be at least 55 years old to qualify for a retirement interest only mortgage. If you’re applying with a partner, your partner must also be aged 55 or over.
It usually takes eight weeks for you to get your money once your application has been received.
Funds will be released in stages after each section of the work is completed. For example:
Purchase of land
Foundations laid
Up to eaves level
Wind and watertight and roof tiled
Interior walls completed
Ready to move in
Yes, you can make overpayments of up to 10% in any 12 month period without incurring an early repayment charge. If you exceed this in any 12 month period during the first three years of the mortgage, you’ll be charged 3% of the amount overpaid. Regular overpayments on your mortgage are restricted to a maximum of £250 per month.
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Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife.
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