Scottish Building Society Retirement Mortgage

Are You Considering the Retirement Mortgage Scheme? What are the Eligibility Requirements, Features, Interest Rates & Scheme Options? Discover If This Equity Release Plan Is For You.

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Scottish Building Society Retirement Mortgage Review

Retirement Mortgage Key Details

Type Rate APR
Scottish Building Society Variable 2.44% 4.60%

Scheme Incentives

  • Free Valuation
  • Legal Fees Contribution

Scheme Offers

  • £150 Contribution Towards Legal Fees*
  • 3-Year Early Repayment Charges
Scottish Building Society Retirement Mortgage

I think you’ll agree with me when I say:

It’s REALLY hard to choose the best equity release scheme with all the choices available.

Or is it?

Is the Scottish Building Society Retirement Mortgage, equity release scheme the best?

Don’t let your equity release dream become a nightmare!

Luckily, we’re here to guide you on the in’s and out’s of equity release, as you deserve only the best.

However, not all plans are suited to each individual. You need to look for one that will serve your home, your lifestyle, and the reason why you’re considering equity release in the first place.

As leading experts in the field, we’ve delved into hours of research, unpacked all the equity release plans on the market (we’ve reviewed over 250 schemes!), and discovered the best in the business.

Could the Scottish Building Society Retirement Mortgage be the right equity release plan for you?
We’re here to help you:
Scottish Building Society is one of the leading equity release providers on the market and might just be the answer you’ve been looking for.
Can you truly go wrong with Scottish Building Society?
Let’s find out!

What's Equity Release?

We've summed up the most important information about the topic in this quick video.

An equity release mortgage is, in a nutshell, a loan plus interest that is paid back to the lender when the homeowner passes away or goes into permanent care. The homeowner’s family usually pays back the cash released, and the interest incurred, from the sale of the home in question.

Learn More: What’s Equity Release?

How Does Equity Release Work?

Equity release is available for individuals or couples over 55, with the youngest homeowner’s age determining the amount of equity that can be released. It is important to note that some equity release schemes may require the homeowner to be 60 or older.

Learn More: How Does Equity Release Work?

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Most popular reasons for releasing equity

Who Are Scottish Building Society?

A little bit about them.
Learn a bit more about them here.

Scheme Background

The Scottish Building Society, Scotland’s only independent building society, offers a range of mortgages to residents of Scotland, including a residential mortgage that can help retirees borrow up to the age of 85.

This all-purpose loan can also assist people looking to raise capital to buy their rented property from the local authority or housing association.

The Scottish Building Society was formed in 1848. It has grown over the years with local mergers and still operates as a mutual. This status attributes the philosophy of careful money management and promotion of home ownership to its 30,000 members via its website and 6 building society branches.

In addition, Scottish Building Society now have a Retirement Interest-Only Mortgage (RIO) which will lend on a lifetime mortgage basis – see our RIO Mortgages Section.

Eligibility & Requirements

The Residential Mortgage from Scottish Building Society is for owner occupiers aged 18 and up till retirement. The sole requirements are that it be for a minimum of 5 years and a maximum of 40 years.

Scottish Building Society will only lend on Scottish homes to owner occupiers with sufficient and consistent income to cover their monthly interest-only or capital and interest mortgage payments.

Scottish Building Society accepts pension income as eligible income in retirement, and as a general rule, they will lend 4.5x income to single applicants, and 4.5x first income + 1x second income or 3.5x joint to joint applicants.

The overall maximum lending limit is 90% of the property value or purchase price, resulting in a £300,000 maximum loan size. The maximum loan is £350,000 for loan-to-values (LTVs) up to 80% of the property value, and £500,000 for LTVs up to 70% of the property value.

Interest-only mortgages are subject to a number of restrictions. With a maximum loan size of £350,000, they are only accessible up to 75% of the property value or purchase price (whichever is lesser).
Scottish Building Society will need a suitable repayment vehicle in place at the time of application, which might be an endowment policy, stocks and shares ISA, pension lump sum, or a second/investment property.

For your customized Scottish Building Society Residential Mortgage Key Facts Illustration, please call 0800 802 1051.

Minimum Property Valuation

Scottish Building Society Retirement Life plan updates are still in the works. We will give an update soon.

Property Location Requirements

Scottish Building Society Retirement Life plan updates are still in the works. We will give an update soon.

Single vs Joint

Scottish Building Society Retirement Life plan updates are still in the works. We will give an update soon.

Minimum Release

Scottish Building Society Retirement Life plan updates are still in the works. We will give an update soon.

Scheme Features

The Scottish Building Society Residential Mortgage is an income-based mortgage that can be used beyond retirement. As a result, the lender will need to verify your affordability. It can be used as a remortgage instrument to acquire more funds for any demands you have in retirement.

The maximum mortgage is up to 75 percent of the property value for an interest-only mortgage, and the amount borrowed is based on both income and property values. The loan is secured by the property, and interest-only payments must be made every month for the remainder of your life.

The money borrowed is discounted for three years, and there are no early repayment penalties after that time period. Monthly interest-only payments are necessary, with the goal of keeping the mortgage balance constant during the period of the plan. Overpayments of ten percent each year are not subject to penalties.

Because the Scottish Building Society is not a member of the Equity Release Council, their programs are not subject to the same code of conduct as other equity release schemes like the no negative equity guarantee.

Scottish Building Society requires monthly interest-only payments if an interest-only payment plan is requested. As a result, the balance will remain unchanged for the remainder of the plan’s term. However, there is a 10% overpayment option that allows additional payments to the lender over and above the fixed monthly amounts.
If you prefer to repay the mortgage in full over a set period of time, this mortgage can be established on a capital and interest basis.

Valuation Features

Scottish Building Society Retirement Life plan updates are still in the works. We will give an update soon.

Early Repayment Feature

Scottish Building Society Retirement Life plan updates are still in the works. We will give an update soon.

Equity Release Council Status

Scottish Building Society Retirement Life plan updates are still in the works. We will give an update soon.

Joint Application Features

Scottish Building Society Retirement Life plan updates are still in the works. We will give an update soon.

Scheme Options

The Scottish Building Society Residential Mortgage allows house owners to spend their tax-free money as they like, while still safeguarding their equity by making interest-only payments.

There are a variety of 3-year discounted and 3-year fixed interest rates to choose from, with rates varying depending on the loan-to-value and whether fee-free choices are chosen.

*The Scottish Building Society will contribute £150 towards legal fees for remortgages on Scottish properties, and the cost of a normal mortgage appraisal will be returned upon completion.
**The above rate is a three-year reduced rate of 3.15 percent off the SVR – residential mortgage contract.

Please call the Equity Release Supermarket team on 0800 802 1051 for further information or to receive a quote on the Scottish Building Society Residential Mortgage.

Repayment Options

Scottish Building Society Retirement Life plan updates are still in the works. We will give an update soon.

Inheritance Protection

Scottish Building Society Retirement Life plan updates are still in the works. We will give an update soon.

Application Fees

Scottish Building Society Retirement Life plan updates are still in the works. We will give an update soon.

Cashback Options

Scottish Building Society Retirement Life plan updates are still in the works. We will give an update soon.

Footnotes

Scottish Building Society Retirement Life plan updates are still in the works. We will give an update soon.

Editor’s Rating: 4.85

Scottish Building Society's Other Equity Release Schemes

Are you looking for a specific equity release scheme?

These are some of the schemes offered by Scottish Building Society.

Not what you're looking for?

Have a look at all the equity release schemes available on the market, with our easy to use table!

Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui

Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.

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HOW MUCH EQUITY CAN YOU RELEASE?

Most people are using equity release as a means of retaining the use of their house while also obtaining a lump sum or a steady stream of income. Get matched with an expert and check your eligibility for equity release options.

See how much you can release today!

How Much Can You Release?

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Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.
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Written by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Written by
Katherine Read
Financial Planning Reporter

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.
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Written by
Nicola Date
Writer & Financial Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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