Features and benefits

• A minimum age of 21 for the applicant
• Borrow up to 85% of the purchase price or valuation of the property

Percentage of valuation

• Up to 85% of the purchase price or valuation of the property, whichever is the lower including costs
• For new build properties the maximum is 80%

Main mortgage - terms and amount

The main loan account for purchase of the property and any other capital required at the outset.

• Minimum amount £50,000
• Minimum term 5 years
• Maximum term is 40 years or expected retirement age, whichever is earlier

Mortgage Reserve Account - additional drawdown facility

Your clients may apply for additional funds by way of a Mortgage Reserve Account to use for any purpose such as home improvements, holidays, car purchase, business or education needs. Subject to approval, we will arrange a pre-agreed limit and your client will have the freedom to deposit and withdraw funds as and when they wish. These will be made by electronic funds transfer via their existing personal current account using our simple telephone procedure.

• Minimum facility of £5,000
• Maximum facility - 30% of the overall borrowing subject to a maximum limit of £50,000
• Minimum term 5 years
• Maximum term 40 years or expected retirement age, whichever is the earliest.
• Must be repaid in full over the term of the main mortgage
• Subject to overall 75% loan to value or £1 million
• No arrangement fee
• No repayment programme until the upper limit is reached, however interest will continue to be charged on the outstanding balance on a monthly basis at our Standard Variable Rate.
• Regular payments can be made at any time
• Transfers to and from the Mortgage Reserve Account will be made by electronic funds transfer to/from a nominated personal bank or building society account
• Mortgage payment holiday and reduced payments available (subject to application)
• Funds available from day mortgage completes

Security required

• First legal charge over residential property for all borrowing (Standard Security in Scotland).

Repayment methods

• Repayment only
• Interest only
• Part repayment and part interest only
• The method of repayment has to be repayment If the borrowing is above 75% and up to 85% LTV

Special features

• Minimum lump sum repayment of £1,000
• Further advance minimum of £5,000
• Increased monthly repayments available on variable rate mortgages
• Mortgage repayment holidays and reduced monthly payments considered, subject to qualifying criteria (only available with Mortgage Reserve Account)

Early repayment

• An early repayment charge is applied within any discounted or fixed rate period

Offset

• The offset facility is available on all 2 year fixed rates and all variable rates. If your client's mortgage is made up of more than one product or is part repayment and part interest only, please indicate which product they would like to offset against and we will make this the main portion of your client's mortgage
• Clients can choose either reduced term or reduced monthly payments as their offset benefit
• With the reduced term option, monthly mortgage payments remain at the same level until an interest rate change
• With the reduced monthly payment option, monthly mortgage payments will vary
• To use the offset facility, an Offset Saver Account must be opened in the same name(s) as the Mortgage Account
• Transfers to and from the Offset Saver Account will be made by electronic funds transfer to/from a designated personal account
• Interest calculated daily on Mortgage Account balance LESS Offset Saver Account balance and applied monthly to Mortgage Account
• If your client chooses reduced term as their offset benefit, any mortgage overpayments your client makes will reduce the term of their mortgage
• If your client chooses reduced monthly payment as their offset benefit, any mortgage overpayments they make will reduce the monthly mortgage payment
• Clients can switch between reduced term and reduced monthly payment up to four times per year
• No credit interest will be paid on the Offset Saver Account if the balance exceeds the mortgage debt
• The minimum balance of an Offset Saver Account is £100
• Mortgage Reserve Account balance not included in offset arrangement
• For at least one month after the mortgage completes, the minimum net balance of your clients' Mortgage Account after offsetting any savings, must be £50,000.
• With reduced monthly payment as the offset benefit, mortgage payments will be adjusted from the second mortgage payment - the first mortgage payment will always be collected in full.
• If your client uses part repayment and part interest only to repay the mortgage, they can only offset against one portion.

Use the offset calculator to see how your clients could benefit

Read How Offset Works for more detailed information about offsetting with Scottish Widows Bank.

Interest rates

Variable

• Variable rate options available as part or all of main mortgage
• Calculated on a daily basis
• Product fee may be applicable (See ‘Our Mortgage Rates’ Sheet for details).
• Overpayments allowed
• Portable mortgage
• Switch and fix facility

Fixed

• Fixed rate option available as part or all of main mortgage
• Calculated on a daily basis
• Non refundable booking fee payable (See ‘Our Mortgage Rates’ Sheet for details)
• Up to 10% of the loan balance may be repaid, once per year by cheque, without early repayment charge on fixed rates
• Portable mortgage

View the latest interest rates.

Insurance

It is important to ensure that buildings insurance arrangements are in place to adequately protect your clients’ homes. Scottish Widows Bank can offer a very comprehensive, yet reasonably priced policy.

Building Insurance

• Cover against the full cost of repairing their home in the event of most hazards including fire, flooding and storm
• Protection against home contents and accidental cover

Contact us on 0845 845 0110 for a quotation or more information.