Scottish Widows

Notes: The following information is provided by a third party organisation. We have not verified this information with the lender. Ask your broker to confirm any aspects that are important to you. The main features of this mortgage will be confirmed in the Key facts Illustration. Please ask your broker for a Key facts Illustration

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Advances

Upto £500,000 85% LTV

Notes

Mortgage is Portable, Mortgage is Flexible, Under payments allowed., Overpayments allowed.
This mortgage product is portable. The loan on your new house will be subject to our normal lending criteria.
If you move house and port rates during the period in which Early Repayment Charges apply, Scottish Widows Bank will refund these charges, however, a proportion of the Early Repayment Charges will be payable if a lower loan amount is required for the new property.
Customers on a base rate tracker product can switch, without penalty, and secure a new fixed rate product. The appropriate new fixed rate booking fee would be payable but no Early Repayment charge would be applied for early withdrawal from the tracker product.

Offset Linked Saver Account Options

Option 1 - Reduced term
If you choose this option, your monthly mortgage payments will always stay the same – subject to changes in interest rates. However, because the savings in your Offset Saver Account are offsetting against your mortgage, more of the monthly repayment is used to pay back the balance of your mortgage – which makes it possible for you to pay off the mortgage sooner. And you could save thousands in interest payments too.

Option 2 - Reduced payments
If you choose this option, your monthly mortgage payment could be reduced, giving you more disposable income. This is because the savings in your clients Offset Saver Account are used to reduce how much they would normally pay each month. The term of their mortgage remains the same and the client could save thousands in interest payments too.


This product has a Mortgage Reserve Account option. Features are: subject maximum LTV of product; electronic funds transfer - minimum £100; minimum facility - £5k; maximum facility normally £50k; regular payments available. Funds are available from day mortgage completes. No repayment programme is required on the Mortgage Reserve Account until the limit is reached. Interest will accrue until then.

If the loan amount is over £1 million it will be referred directly to Scottish Windows Bank credit team.
For residential borrowing with Buy to Let Properties, we will consider each case on an individual basis. Please refer to lender for further details.

Payment Holidays Allowed. You may apply to Scottish Widows Bank for agreement to reduce or suspend your monthly payments for a time, provided your mortgage account has been well maintained for at least 12 months and you have a Mortgage Reserve Account in place. The reduced or suspended payments will be met from the Mortgage Reserve Account and interest will be charged on this account at Scottish Widows Bank’s Standard Variable Rate.

Linked Savings/Offset Account. Where all or part of your mortgage accounts on a variable, discounted, tracker or specific fixed rate product you have the option of applying for an Offset Saver Account, which allows you to offset your savings against this portion of your mortgage. Instead of earning interest on your Offset Saver Account, you will not be charged interest on the equivalent amount of your mortgage. Our offset facility allows you to benefit by either reducing the term of your mortgage or reducing your monthly mortgage payment. Please refer to the product brochure for further details

There are no restrictions on making overpayments to this loan. Once any overpayment has cleared it will reduce the amount of interest you will be charged.
A Mortgage Reserve Account is required if you wish to gain access to overpayments in the future. Visit our website for further details at www.scottishwidowsbank.co.uk/extranet.

See Payment Holidays.

This mortgage includes a facility for additional borrowing without further approval. Mortgage Reserve Account - Subject to Scottish Widows Bank’s lending criteria you can also apply for a Mortgage Reserve Account. This is an additional drawdown facility which allows you to withdraw and deposit funds within a pre-agreed limit.
Refer to product brochure for further details.

Capital Rest Period : Daily

Repayment Types
Repayment Yes
Endowment No
PEP No
Pension No
Interest only (no RV) No
With Profits No
Unit Linked No
ISA No
Split Repayment No

Fees
Arrangement : None
Booking : refer

Early Repayment Charges
refer

Higher Lending
None

Valuation
Basic:
upto £75,000 - £115
upto £150,000 - £175
upto £250,000 - £225
upto £350,000 - £280
upto £450,000 - £325
upto £500,000 - £385
upto £600,000 - £465
upto £700,000 - £550
upto £800,000 - £610
upto £900,000 - £690
upto £1,000,000 - £795

Homebuyers:
upto £75,000 - £250
upto £150,000 - £350
upto £250,000 - £450
upto £350,000 - £550
upto £450,000 - £650
upto £500,000 - £705
upto £600,000 - £785
upto £700,000 - £890
upto £800,000 - £960
upto £900,000 - £1100
upto £1,000,000 - £1250

There are no restrictions on making overpayments to this loan. Once the overpayment has cleared it will reduce the amount of interest you will be charged. Overpayments can be made down to £100 without penalty during the ERC period.
Valuation Fee
Once we have instructed the surveyor to carry out a valuation report they will contact you to arrange payment of any applicable fee before arranging a date to visit the property'
Applicant has the option of adding the Arrangement/Booking Fee to the loan or paying upfront.
Redemption Fee (added to loan on redemption of the mortgage) £195


Lender Conveyancing Fee - £175.00 Payable on completion. Fee payable to your solicitor for acting on behalf of Scottish Widows Bank. The fee amount quoted is an estimate and covers only part of the cost of the legal work that you may need to pay. Ask your solicitor for details.
Transfer of Funds Fee - £25.00 Added to loan.
Redemption Fee - £195.00 Payable on redemption.

Acceptable Property Types

Freehold Flat Yes
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Yes
Maisonette Yes
Studio Flat No
Flying Freehold No
Thatched Yes
Timber Framed No
Concrete No
Agricultural Tie No
Flat Over 4 Storeys Yes
Listed Building Yes

Not Accepted
New Build acceptable. Houses/Flats/Conversion Flats (new build properties are defined as any property mortgaged within six months of the first time it has been occupied, and includes newly converted properties). Maximum 80% LTV on new build properties (Subject to the valuer taking incentives into account).
Property is considered to be New Build if was constructed within less then 24 months.
Incentives on new build properties: Some builders offer cash incentives to help market their properties, These may include but are not limited to deposit contributions, cash- backs, contribution to legal fees and stamp duty, moving costs, mortgage subsidies.
It is important the valuer is made aware of any incentives as these will be taken into account when determining the value of the property.
Cash incentives up to 5% of the property value are acceptable provided:
· We are made aware of the value of any cash incentive at the time off the mortgage application is made.
the loan and cash incentive together are not greater than 5% above the maximum loan to value limit.
Where this figure will be exceeded the loan amount must be reduced accordingly. Cash incentives greater than 5% of the property value will only be acceptable where the customer is contributing more than the minimum personal deposit and the above requirements are met.  

Accepted Locations : England, Scotland, Wales, N Ireland

Requirements

Bank Statements 1 months
At Least 3 Months Pay Slips No
P60 No
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References No

Insurance
Buildings Conditional

Conditions On Loan
Min Loan £50,000
Max Loan £500,000
Max Portfolio of BTL Loans none
Min Age 21 years
Max Age 70 years
Min Term 5 years
Max Term 40 years
Bank Statements 1 months certified copy. If Foreign National 3 months required.
Foreign nationals have to be in the UK for minimum 24 months and achieve an App score pass A to qualify for the maximum loan to value of 75% LTV only. Nationality of the applicant(s) - will be verified by the Intermediary, who will provide us with a certified copy of the documentation. The Intermediary may use the applicants’ passport to confirm both nationality and the date of entry into UK(if appropriate).
The minimum requirement of 2 years in UK– can be evidenced from the following sources, through the Experian bureau data, or from the employment reference.
Permanent Employment status will be evidenced from the employment reference.
For Residential Mortgages:
Self Employed - In addition to banks statements we may contact your accountant for a reference.
Employed - In addition to banks statements we may contact your employer for a reference.
For split loans the term on the interest only and repayment element must be the same.
Max age is 65 yrs, however self employed applicants are considered to a maximum age of 70 on an individual basis.

Buildings insurance is a condition of this mortgage.
Foreign Citizens Accepted
Ex-Patriates Not Accepted

Income Multipliers
Based on Income > 1
3.5 + 1 or 2.75 joint

Based on Income > 30000
4 + 1 or 3.5 joint

Based on Income > 50000
4.5 + 1 or 4 joint

Min months in current position none
Min months in continuous service none
Min no. of years accounts 3
Average years taken to calculate income 1
Will consider declining profit Yes

Outgoings
Minimum trading period is 12 months.
Accountants certificate is required.
All cases are treated on an affordability basis and will be considered on their own merit.
For Flexible Mortgage -
Salary Below £30,000.00 = 3.5x Single, 2.75x Joint or 4 plus 1.
Salary £30,000 - £50,000 = 4x Single, 3.5x Joint or 4 plus 1.
Salary £50,000 plus = 4.5x Single, 4x Joint or 4.5 plus 1.
(ALL APPLICATIONS ARE SUBJECT TO INDIVIDUAL ASSESSMENT AND EACH WILL BE CONSIDERED ON ITS OWN MERITS)

Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education Taken into account
Extra Income:-
Other Income - Guaranteed Add 100% to income before multiply
Other Income - Regular Add 100% to income before multiply
Other Income - Irregular No
Investment Income No
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Add 100% to income before multiply
Non Contributory Pension Add 100% to income before multiply
Car Allowance Add 100% to income before multiply

Remortgage Max LTV Max% increase

Remortgage Not Available

Adverse Credit

CCJs : Acceptable, must be satisfied
Defaults : See CCJs
Arrears : Acceptable,
Bankrupt : Not Acceptable
Current IVA : Not Acceptable
Repossession : Not Acceptable

- The Lender will judge customers with previous or existing adverse credit in a flexible manner and every case will be judged on its individual merits, along with the customer's ability to keep up repayments on the mortgage, taking into account his/her existing liabilities.
- The Lender will consider cases of financial difficulty and mortgage arrears sympathetically.
- The Lender follows the general principles of the Council of Mortgage Lenders' Statement of Practice on Handling Arrears and Possessions, including :
a) with your co-operation, developing a plan with you for dealing with your financial difficulties and clearing the arrears, consistent with both your interests and the Lender.
b) possession of your property will be sought only as a last resort when attempts to reach alternative arrangements with you have been unsuccessful.