The Scottish Building Society is a mutual. It operates in a risk adverse manner, with a traditional business style to benefit members seeking retirement solutions. The society started offering products since 1848, making it one of the oldest companies to offer retirement packages. While the products may have changed the services have not.
For retirement products the Scottish Building Society has retirement mortgages with incentives for their members to choose their product over a non-member product elsewhere. Scottish Building Society offers a retirement mortgage, which is an interest only lifetime mortgage.
Criteria of the Scottish Building Society Retirement Mortgage
This interest only lifetime mortgage is available to a select local area: Scotland, Cumbria, and Northumberland. Plans begin at age 65, with no maximum age requirement, and with proof of retirement income required. All normal lending criteria will apply with income checks for the ability to make monthly interest repayments, as well as credit history checks.
The Scottish Building Society has a maximum loan to value percentage offer of 25%. The minimum loan size will be £30,000 with a maximum of £300,000. Scottish Building Society does not list any minimum or maximum home value. Instead, their mortgage product is available for any residential properties with a suitable property valuation as long as the homeowner fits other lending criteria.
Unique Features of this Retirement Mortgage
This loan has flexible features under repayment options and can provide an interest only mortgage basis with the acceptance of the sale of property as the repayment vehicle.
Repayment is based on an interest only mortgage, in which monthly repayments are made for interest only. The capital sum remains the same for the loans term. Loan terms stated death, sale of the main residence, or move by both applicants into a long-term care centre require full repayment of the capital plus any outstanding interest payments. Each month the accrued interest must be paid in full to maintain a level balance.
It is possible to repay some of the capital amount without penalty. In the initial loan period homeowners can make up to 10% repayment per year without penalty. If the amount is over 10% early repayment charges will apply.
Scottish Building Society Retirement Mortgages Incentives
Scottish Building Society Retirement Mortgages incentives are not exclusive. They include a free valuation and £150 towards legal fees.