All You Need To Know About Mortgage In Scotland

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Just like everywhere else in the UK, a Scottish lender must assess your income and expenses to judge your ability to make repayments on a mortgage. So the premise of the mortgage application process is the same, it’s just the process that differs slightly.

READ: UK Mortgage Requirements & Questions/Answers

How much deposit do I need for a mortgage Scotland?

A 95% mortgage, also known as a 95% loan-to-value (LTV) mortgage, is a mortgage to purchase a property with a small deposit Your deposit is the amount of money that you need to put into the mortgage to make up 100% of the final purchase price.

All You Need To Know About Mortgage In Scotland

Can foreigners get a mortgage in Scotland?

Foreigners, resident or not, can legally buy property in the UK. As an expat you can also apply for a mortgage, although individual banks will set their own terms. You might find that you’re offered slightly less favourable conditions, or higher interest rates, as a foreign investor.

How much mortgage can you get in Scotland?

If you are buying on your own, a lender will usually allow you to borrow approximately three times your annual income. This amount can be reduced if you have other regular payments to make, such as maintenance payments or credit debts.

How to get a mortgage in Scotland

If you’re thinking of getting a mortgage for a property in Scotland, here’s the recommended process to follow. Starting with contacting a local broker who can help make the process much more straightforward.

All You Need To Know About Mortgage In Scotland

  • Apply for a mortgage in principle. A broker can help you prepare all the financial documentation you’ll need and identify the right lenders for your circumstances
  • Find a property. This is the fun part. Get looking online and booking viewings.
  • Contact a solicitor. Once you’ve found somewhere you’d like to buy, a broker can connect you with a solicitor who will then submit your “note of interest” to the seller and request a home report. Sellers are legally obliged to share this in Scotland.
  • Wait for the lender to provide a formal mortgage offer. Once they do, let your broker know so they can accept on your behalf. Then wait for the solicitor to keep on with the paperwork.
  • Submit any extra information requested by the lender. Sometimes a lender might want to do their own mortgage valuation. A broker can walk you through anything that might be needed.
  • Settlement. This means paying the money and exchanging keys on a predetermined date agreed upon in the missives process.
  • Make an offer. The solicitor can submit this on your behalf along with any other details to support your case.
  • Wait for the solicitor to complete the missives process. The solicitor will also be doing a series of checks to make sure there are no issues with purchasing the property.
  • Find a broker. Online Money Advisor can match you with someone who has knowledge of the local market and can help you find the best mortgage to match with your specific requirements
  • Let your broker know so they can help you prepare your mortgage application.
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How do I get a mortgage for a house in Scotland?

Getting a mortgage in Scotland involves identifying your budget, finding a suitable mortgage lender, and securing a Mortgage in Principle. Once you’ve found a home you like and you’ve had an offer accepted, you’ll need to inform your mortgage broker or lender so that they can start processing your mortgage application.