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 Scheme Review

Retirement Mortgage Key Details

Type Rate APR
Scottish Building Society Variable 2.44% 4.6%

Scheme Incentives

  • Free Valuation
  • Legal Fees Contribution

Scheme Offers

  • £150 Contribution Towards Legal Fees*
  • 3-Year Early Repayment Charges

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 ins and outs of equity release, as you deserve only the best.

However, it’s important to remember that 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!

Who Are Scottish Building Society?

The Scottish Building Society is a building society based in Edinburgh, Scotland. It is the oldest building society in the world, the only independent building society based in Scotland and the 25th largest in the United Kingdom based on total assets of £431.4 million at 31 January 2020. It is a member of the Building Societies Association.
Learn more about the various Scottish Building Society equity release schemes.
Scottish Building Society Retirement Mortgage

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.

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.

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

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.

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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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