The Scottish Building Society was Scotland’s very first building society and was founded back in 1848. This lender has always prided itself on making customers and members the ultimate and first priority and operates as a mutual building society.
The Scottish Building Society is not only a unique lender but also offers unique products. The retirement mortgage offered by this lender is no different. In fact, the Scottish Building Society is one of the only providers of interest only mortgages in Scotland where borrowers can rest assured that the amount they borrow will never increase. This is because with this retirement mortgage, borrowers pay the accrued interest on a monthly basis, meaning that the amount borrowed never changes. This is incredibly unique to the Scotland equity release marketplace and the Scottish Building Society is one of the only lenders to offer such a product.
In order to qualify for the interest only mortgage, homeowners must be at least 60 years old but there is no maximum age applied. Borrowers must also own their property in Cumbria, Northumberland, or Scotland and the product is not allowed for use with sheltered housing. The rate is fixed for the life of this loan and the maximum loan amount available goes all the way up to 25% of the property value. Unlike other lenders and products, with the retirement mortgage offered by the Scottish Building Society, the loan amount approved depends on income and not age. Also unique to this product, there are no early repayment fees after the first three years of the loan term. Even within the first three years, borrowers are allowed to repay up to 10% in over-payments without incurring any penalties.
This retirement mortgage is perfect for the homeowner who is looking to ensure that their loan never exceeds the original amount borrowed. This can mean that a significant inheritance can still be left behind to beneficiaries. This product also allows for repayment after three years which is an innovative benefit for those homeowners who are just looking for a large lump sum for a short period of time.
The interest only mortgage plan could be utilised for paying off debt, taking a long holiday, or helping family members through a financially difficult time. Then, the loan can be paid off in full after three years without incurring any penalties. This is a rare feature for a retirement mortgage. Lastly, there are few lenders with the history and reputation of the Scottish Building Society which means that homeowners and borrowers can rest assured that they are getting a top notch product.