Professional Mortgage - Scottish Widows by yaohongmeiyes

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									 Professional
   Mortgage
        A flexible mortgage
exclusively for professionals
    The Professional Mortgage
    When you are studying to get a professional qualification, it takes years of preparation and planning. Scottish Widows Bank
    understands this and believes that you have earned the opportunity to enjoy more financial freedom and flexibility.
    Which is why we are offering a flexible mortgage exclusively to fully qualified and practicing accountants, actuaries, barristers,
    dentists, medical doctors, optometrists, pharmacists, solicitors (including trainees), teachers and vets. And, you don’t have
    to be newly qualified to apply.


    Key Features                                                              Flexible mortgage rates
    •   Borrow up to 90%                                                      You can choose a fixed rate mortgage which could give you peace
                                                                              of mind as your monthly payments would stay the same until the
    •   Flexible mortgage rates
                                                                              fixed rate expiry date. Or, you can choose a variable interest rate,
    •   Overpayment facility                                                  meaning payments could increase or decrease during the
                                                                              mortgage term.
    •   Offset facility available at no extra cost
                                                                              You can even choose a fixed rate for part of your mortgage,
    •   Remortgage incentives
                                                                              with a variable rate for the rest. It’s entirely up to you.
    •   Additional borrowing available six months after completion,
        subject to lending criteria
                                                                              Remortgage Incentives
    •   Flexibility for the self employed
                                                                              There are two options.
    •   Internet Banking                                                      •    Remortgage package 1 – Valuation costs (or refund up to
                                                                                   £250*) will be paid by Scottish Widows Bank and free legal
    90% Borrowing                                                                  fees when your client uses our solicitors (this does not include
                                                                                   any additional services, such as property title transfer or
    The Professional Mortgage allows you to borrow up to 90%
                                                                                   properties in England and Wales where the property requires
    of the purchase price or valuation of your property – whichever
                                                                                   first registration in HM Land Registry. Our solicitors will not be
    is lower. (For new build properties, the maximum you can borrow
                                                                                   able to give you legal, financial or tax advice on your
    is 80%).
                                                                                   remortgage. We recommend that you contact your own legal
                                                                                   or financial adviser should you require such advice).
                                                                              or
                                                                              •    Remortgage package 2 – Valuation costs (or refund up to
                                                                                   £250*) will be paid by Scottish Widows Bank plus cashback
                                                                                   of £300 on completion of the mortgage.
                                                                              Please note, neither remortgage package will be offered
                                                                              if there’s not currently a mortgage on the property, or if
                                                                              the property has been owned for less than six months.
                                                                              Remortgage package 1 is not available in Northern Ireland.
                                                                                   For remortgage applications up to 60% LTV and £300k
                                                                                   Scottish Widows Bank will undertake a free external survey
                                                                                   (or standard where appropriate). For remortgages up to
                                                                                   75% LTV and £500k Scottish Widows Bank will undertake
                                                                                   a standard survey and absorb the cost of this.
                                                                                   *If the property is worth more than £1 million, or for
                                                                                   applications outwith the above criteria, Scottish Widows Bank
                                                                                   will refund up to £250 towards the cost of the valuation.




1
Overpayment Facility                                                                                         Flexibility for the self-employed
By overpaying in addition to your regular mortgage payments,                                                 Arranging a mortgage with us is trouble free, even if you
you will reduce the balance of your mortgage quicker.                                                        are considered a non standard applicant in the eyes of most
This means that you pay less interest and could pay off your                                                 banks/building societies. Our Professional Mortgage is ideal
mortgage sooner. With our variable rate mortgages, you can                                                   for the self-employed because:
make regular overpayments to your mortgage. Or, if you choose
                                                                                                             •     Every case is assessed individually by experienced staff.
a fixed rate mortgage, you can pay up to 10% of the loan
balance once a year.                                                                                         •     We underwrite mortgages based on your individual
                                                                                                                   circumstances rather than just running your basic earnings
Please note, if you choose reduced monthly payment as an offset
                                                                                                                   through a rigid formula.
benefit, any mortgage overpayments you make will reduce
the monthly mortgage payment.                                                                                •     Our offset facility enables you to offset your savings against
                                                                                                                   your mortgage, perhaps using the money you put aside
The graph shows you the potential savings from making
                                                                                                                   to pay your tax bills.
overpayments to a variable rate mortgage.
The illustration below is based on an example interest rate and is                                           Internet Banking
not necessarily the current rate offered by Scottish Widows Bank.
                                                                                                             Our Internet Banking service offers a convenient way for you
It is purely to demonstrate the savings which can be                                                         to manage your mortgage 24 hours a day, seven days a week.
made by making lump sum or regular overpayments to
a Scottish Widows Bank Professional Mortgage. Please see                                                     And it’s easy to register too – just complete the ‘Internet Banking’
the enclosed ‘Our Mortgage Rates’ sheet for details of our                                                   question on your Professional Mortgage application form.
current interest rates.                                                                                      Please note, Internet Banking cannot be accessed or operated
On a £130,000 repayment mortgage, with a standard variable                                                   by Guarantors, Powers of Attorney or Third Parties.
rate of 3.99% over a 25 year period.
If a customer overpays £75 monthly from year one and also pays
a £5,000 lump sum in year five, the mortgage would be paid
off 4 years and 11 months early saving £17,431.61 in interest.
The overall cost for comparison is 4.1% APR.



                              130000

                              120000

                              110000

                              100000

                               90000
    Outstanding Balance (£)




                               80000

                               70000

                               60000

                               50000

                               40000

                               30000

                               20000

                               10000

                                   0
                                       0   20   40   60   80   100   120     140   160   180    200    220       240   260   280   300

                                                                             Term (months)

                                                          New Loan Balance         Original Loan Balance




                                                                                                                                                                                    2
    Offset                                                                   Option 1 – Reduced term

    Our offset facility is available, at no extra charge on variable         By not earning interest on your savings, the money you have
    and select fixed rate products.                                          in your account is taken away from the amount you owe
                                                                             on your mortgage.
    This is an optional feature designed to use your savings to help
    you save money. This means you won’t earn any interest on                Although monthly mortgage payments remain the same (until
    these savings, but you won’t be charged any interest on the              an interest rate change) the interest payable is reduced, based
    same amount of your mortgage.                                            on the balance of your Offset Saver Account. This effectively
                                                                             means you could potentially pay your mortgage off sooner
    If you decide to offset, there are two options for you to choose from.   and also make substantial savings.
    You could benefit from offsetting by either:
                                                                             Example
    •   Paying off your mortgage early (called ‘reduced term’), or;
                                                                             •                          £100,000 mortgage, plus a £999 product fee and £25
    •   Reducing your monthly payment.                                                                  CHAPS fee.
                                                                             •                          5 year variable rate mortgage at 5.29% (reverting to 5.00%
    Easy to use
                                                                                                        standard variable rate).
    With our offset arrangement, there’s no need to change your
                                                                             •                          25 year term.
    current account, credit cards or personal loans. We simply set
    up a savings account (called an ‘Offset Saver Account’) that             •                          Repayment mortgage.
    runs alongside your mortgage. Your Offset Saver Account can
                                                                             •                          £5,000 deposit in the Offset Saver Account from month one.
    be managed using internet banking, by telephone, and by post.
                                                                             •                          Regular £100 monthly payment to the Offset Saver Account.
    Deposits and withdrawals are made using your existing bank
    or building society account.                                             By offsetting you would reduce the term of your mortgage
                                                                             by 4 years, and save £28,699.56 in interest payments.
    Your Options                                                             The below graph illustrates this:
    Here are your two options if you choose offset.
    And, during your mortgage, you can even switch between                                             100000
                                                                                                        90000
    each option to suit your circumstances.
                                                                             Outstanding Balance (£)




                                                                                                        80000
                                                                                                        70000
                                                                                                        60000
                                                                                                        50000
                                                                                                        40000
                                                                                                        30000
                                                                                                        20000
                                                                                                        10000
                                                                                                            0
                                                                                                                0   20 40 60 80 100 120 140 160 180 200 220 240 260 280 300
                                                                                                                                      Term (months)
                                                                                                                          Without offsetting        With offsetting




3
Option 2 – Reduced monthly payment                                                                Offset Overview
With this option, the term of your mortgage remains unchanged,                                    What you need to know:
and your monthly mortgage payment is reduced. The savings
in your Offset Saver Account are used to reduce how much                                          •   Simple and easy to manage – just a mortgage and
you would normally pay.                                                                               a savings account.

Example                                                                                           •   You can access your savings any time you need to.

•           £100,000 mortgage, plus a £999 product fee and £25                                    •   The minimum balance for your Offset Saver Account is £100.
            CHAPS fee.                                                                            •   The offset facility is available on all variable rates and some
•           5 year variable rate mortgage at 5.29% (reverting to 5.00%                                fixed rates. If your mortgage is made up of more than one rate,
            standard variable rate).                                                                  please indicate which rate you would like to offset against.

•           25 year term.                                                                         •   If you choose part repayment and part interest only to repay
                                                                                                      your mortgage, you can only offset against one of these parts.
•           Repayment mortgage.
                                                                                                  •   There are two offset benefits to choose from – reduced term
•           £20,000 deposit in the Offset Saver Account from                                          or reduced monthly payment.
            month one.
                                                                                                  •   You can switch between the two offset benefits – reduced term
After your offset benefit begins, your monthly payments for                                           and reduced monthly payment – up to four times per year.
the remainder of the next five years would be £519.60 instead
of £607.77. Here’s how your payments look in year two:                                            Interest calculations:
                                                                                                  •   The more money you have in your savings account the less
                                                                                                      interest you’ll be charged on your mortgage.
                               700
                                                                                                  •   Interest is calculated daily on your mortgage account balance
                               600
    Monthly mortgage payment




                                                                                                      LESS your Offset Saver Account balance then applied monthly
                               500
                                                                                                      to your mortgage account.
                               400
                                                                                                  •   As you don’t actually earn any interest on your savings
                               300
                                                                                                      account balance there is no tax liability.
                               200
                                                                                                  •   No credit interest will be paid on the Offset Saver Account
                               100
                                                                                                      if the balance is more than the outstanding balance on your
                                 0
                                     1   2      3    4    5     6   7   8     9 10      11   12       mortgage. It’s your responsibility to monitor this.
                                                               Month
                                             Without offsetting       With offsetting             Reduced term:
                                                                                                  •   With reduced term as your offset benefit, you could pay
Over the term of your mortgage, you would save £23,764.70                                             off your mortgage sooner and save thousands of pounds
in interest payments.                                                                                 in interest payments. Your monthly mortgage payments
                                                                                                      will stay the same – subject to any interest rate change.
These illustrations are for illustrative purposes only and based on
an example interest rate which is not necessarily the current rate                                Reduced monthly payment:
offered by Scottish Widows Bank. The overall cost for comparison
                                                                                                  •   With reduced monthly payment as your offset benefit,
is 5.3% APR.
                                                                                                      your offset savings are used to reduce your monthly
Important information about reduced monthly payment                                                   mortgage payment whilst the term remains unchanged.
                                                                                                      In addition, you could also save thousands of pounds
With reduced monthly payment as your offset benefit, your
                                                                                                      in interest payments.
mortgage payments will be adjusted from your second mortgage
payment – your first mortgage payment will always be collected                                    •   Your mortgage payments will be adjusted from the second
in full. On an ongoing basis, your offset benefit will be calculated                                  mortgage payment – the first mortgage payment will always
for each full calendar month and your mortgage payment will                                           be collected in full. On an ongoing basis, the offset benefit
then be adjusted accordingly at the end of the following month.                                       will be calculated for each full calendar month and your
We’ll write to you each month to advise you how much your next                                        mortgage payment will then be adjusted accordingly at the
mortgage payment will be.                                                                             end of the following month. We’ll write to you each month
                                                                                                      to advise you how much the next mortgage payment will be.




                                                                                                                                                                        4
    Additional Mortgage Borrowing                                       Further Advance Overview
    A mortgage can be a cost effective way to borrow money, and         •   Minimum facility – £5,000.
    our Professional Mortgage allows you to do just that. You can       •   Maximum facility – Borrowing capped at 85% of the
    apply for a Further Advance of £5,000 or more, subject to our           current value of the property (75% for interest only),
    lending criteria, once you’ve had your mortgage with us for six         subject to assessment
    months or more.
                                                                        •   Repayment Type – Capital Repayment or Interest Only
    You can use the cash raised from a Further Advance however
    you choose, for example you could use it to pay for:                •   Term – Set up in line with the term remaining on your
                                                                            main mortgage
    •   A new car, wedding, or holiday
                                                                        •   Interest Rate – Scottish Widows Bank Standard Variable Rate
    •   Home Improvements
                                                                        •   Cost – Arrangement fee of £199 plus CHAPS fee of £25,
    •   Planning for a child’s school fees, or the cost of                  added to the loan on completion
        higher education
    Further Advance borrowing is charged at our Standard Variable
    Rate, and a £199 arrangement fee applies plus £25 to transfer
    the money into your account by CHAPS (these fees would be
    added to the outstanding balance on completion).
    Any Further Advance would be arranged in line with your
    existing mortgage term, however there are no restrictions on
    overpayments on our Standard Variable Rate, so you could pay it
    off sooner, either by setting up additional monthly overpayments
    with your direct debit, or simply making additional overpayments
    as and when you choose.
    If you’d rather know exactly how much you need to pay each
    month you can switch a Further Advance on to a fixed rate after
    you’ve made your first monthly payment towards the additional
    borrowing. A fixed rate product booking fee may be payable and
    the terms of our fixed rates would apply.
    It’s also possible to apply for a Further Advance on Capital
    Repayment or Interest Only, regardless of the repayment
    type of your main mortgage (subject to meeting our Interest
    Only criteria), giving you the flexibility to choose the mortgage
    product which most suits your circumstances. All Interest Only
    borrowing is subject to evidence of a suitable repayment vehicle
    from our acceptable list.




5
Your mortgage repayment options
To repay your Professional Mortgage, you can choose either       Life Cover
repayment, interest only or part repayment part interest only.
                                                                 Scottish Widows Bank strongly recommends that life cover
                                                                 sufficient to repay your total borrowing is in place prior to
Repayment                                                        drawdown. In common with other lenders we do not currently
With a repayment mortgage you gradually pay off the              require evidence that this has been arranged.
amount you have borrowed, as well as the interest, over
                                                                 However, we strongly recommend that any policies taken out are
the life of the mortgage.
                                                                 monitored on a regular basis. We will remind you annually of this
                                                                 throughout the term of your mortgage.
Interest only
                                                                 Should you have any concerns in this regard please contact your
With an interest only mortgage you only make payments            Mortgage Intermediary.
of interest on the amount you have borrowed. This must
be repaid as a lump sum at the end of the mortgage.
You may need to make payments to a separate savings plan
to build up a lump sum to repay the amount borrowed.
Evidence of the repayment vehicle is required for Interest
Only borrowing.
Please refer to the “Interest Only Mortgage, different methods
of repaying your mortgage” handbook that can be requested
from our customer service team or downloaded from our website.


Part repayment part interest only
This lets you combine both types of repayment options –
meaning part of your mortgage would be repayment, and the
remaining part would be interest only.
Please note that if borrowing is over £1 million, or over 75%
of the purchase price or valuation (whichever is lower) then
the whole mortgage must be taken on a Repayment basis.




                                                                                                                                     6
    Overview of the main mortgage
    Qualifying criteria                                                    Amount of mortgage
    •   Over 21 years of age.                                              Minimum – £50,000
    •   Available to qualified, registered and practising: accountants,
        actuaries, barristers, dentists, medical doctors, optometrists,    Term
        pharmacists, solicitors (including trainees), teachers and vets.   Minimum – 5 years
    •   Any professional listed above who is qualified, registered         Maximum – 40 years or expected retirement age, whichever
        but not currently practising in their chosen profession will       is the earlier.
        be considered on a case by case basis. For example, a fully
        qualified accountant working as a senior finance manager
                                                                           Security required
        would be considered for a professional mortgage.
                                                                           First legal charge over residential property for all borrowing
                                                                           (Standard Security in Scotland).
    Amount you could borrow
    For all applicants we must ensure that you can afford the monthly
                                                                           Remortgage Incentives
    payments and the application will be assessed on this basis.
                                                                           •   Free valuation or refund up to £250
    90% borrowing                                                          •   Free legal fees or £300 cashback
    You can borrow up to 90% of the purchase price or valuation            Restrictions apply – please see page 1 for full details.
    of the property, whichever is the lower. (For new build properties
    the maximum you can borrow is 80%).




7
Interest rates                                                        Early repayment
                                                                      Depending on the interest rate chosen there may be an early
Variable rate                                                         repayment charge within any discounted or fixed rate period.
•   A choice of tracker rates are available on part or all of main    Please visit www.scottishwidowsbank.co.uk and click on
    mortgage. Please visit www.scottishwidowsbank.co.uk               ‘Interest Rates’ for details.
    and click on ‘Interest Rates’ for details.
•   Interest is calculated on a daily basis, meaning any              Repayment method
    overpayments reduce your mortgage balance immediately.
                                                                      •   Repayment.
•   Should you decide to move house during the initial period in
    which an early repayment charge is payable, we will carry the     •   Interest Only.
    rate forward on the outstanding balance if you arrange your       •   Part repayment and part interest only.
    new mortgage with Scottish Widows Bank, subject to our
                                                                      •   Please note that if the borrowing is over £1 million, or over 75%
    normal lending criteria.
                                                                          of the purchase price or valuation (whichever is lower) then
•   Overpayments can be made at anytime without an early                  the whole mortgage must be taken on a Repayment basis.
    repayment charge, as long as the final balance does not fall
    below £100 within the initial period in which an early
                                                                      Special features
    repayment charge is payable.
                                                                      •   Minimum lump sum repayment £1,000.
•   A product fee may be applicable.
                                                                      •   Further advance minimum £5,000.
‘Switch & Fix’ This means that clients on a base rate tracker
mortgage product can switch, without penalty, and secure a new        •   Increased monthly repayments available on variable rate
fixed rate mortgage product. The appropriate new fixed rate               mortgages.
booking fee would be payable, but no Early Repayment Charge
would be applied for early withdrawal from the tracker product.

Fixed rate
•   Fixed rate options are available as part or all of
    main mortgage.
Please visit www.scottishwidowsbank.co.uk and click on
‘Interest Rates’ for details.
•   A non refundable booking fee is added to the loan
    at completion.
•   An overpayment of up to 10% of the loan balance may
    be repaid once a year, without an early repayment charge.
•   Should you decide to move house during a fixed rate period,
    we will carry the rate forward if you arrange your new mortgage
    with us, subject to our normal lending criteria.




                                                                                                                                              8
    Valuations
    We’ve negotiated a competitive fee structure with our surveyors.
    Once we’ve 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.
    If you choose a Royal Institute of Chartered Surveyors Homebuyer Report on your application form, the surveyor will send you separate
    Terms and Conditions.
    These must be signed and returned to the surveyor before the survey can go ahead. This survey must be carried out at the same time
    as the Standard Mortgage Valuation, and the additional cost of this has been negotiated as below.

                                                                               Please note that the sole purpose of the Standard Mortgage
         Value not             Mortgage            Additional fee
                                                                               Valuation Report is to assist us to determine whether a mortgage
         exceeding            Valuation fee         (optional) for
                                                                               advance will be made. The Report is not a structural survey.
                                                  RICS HomeBuyer
                                                       Report                  There may be omissions and the Report may not reveal faults
                                                                               in the property which do not matter to us for the purposes
          £ 75,000                £115                   £135                  of lending the mortgage but could matter to you in the choice
                                                                               of property and how much to pay for the property. It’s important
          £150,000                £175                   £175                  therefore that you don’t rely on this Report in your decision
                                                                               to buy the property. We don’t accept any responsibility for the
          £250,000                £225                   £225
                                                                               contents of this Report even if the valuer has been at fault.
          £350,000                £280                   £270                  We recommend that you obtain your own detailed Report
                                                                               on the condition and value of the property.
          £450,000                £325                   £325
                                                                               We can arrange a more detailed survey on your behalf,
        Over £450,000          On Request            On Request                at a cost to you.


    Remortgage valuations
    •   For remortgage applications up to 60% LTV and £300K Scottish Widows Bank will undertake a free external survey (or standard
        where appropriate)*.
    •   For remortgages up to 75% LTV and £500K Scottish Widows Bank will undertake a standard survey and absorb the cost of this*.
    *If the property is worth more than £1 million, or for applications outwith the above criteria, Scottish Widows Bank will refund up to
    £250 towards the cost of the valuation.
    Please note, this is not available if there’s not currently a mortgage on the property, or if the property has been owned for less than
    six months.




9
                              THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
                 YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.




For more information and how to apply
Call us on 0845 845 0829
Calls are charged at local rates from a BT landline – mobiles and other networks may vary.
Our lines are open 8am to 6pm Monday to Friday (Wednesday from 10am).
Or visit our website www.scottishwidowsbank.co.uk
Or write to us at:
Customer Service Team
Scottish Widows Bank
PO Box 12757
67 Morrison Street
EDINBURGH
EH3 8YJ
Scottish Widows Bank is committed to making its products and services available to everyone. Copies of our literature can be provided
in large print or in Braille and additional assistance is available to any customer upon request. If you have any special requirements, please
contact our Customer Services staff in the first instance on 0845 845 0829.


Choosing your mortgage
Scottish Widows Bank provides information on the range of mortgages which we currently have available. The information in this brochure
is provided to help you make an informed choice of the mortgage you wish to take. We recommend that you consult your Mortgage
Intermediary if you require advice on which option best suits your particular needs and tax position.




                                                                                                                                                 10
Scottish Widows Bank plc. Registered Office: PO Box 12757, 67 Morrison Street, Edinburgh EH3 8YJ. Registered in Scotland no. 154554.
Authorised and regulated by the Financial Services Authority. Our Financial Services Authority register number is 201601.
Confirmation can be obtained by visiting the Financial Services Authority website at www.fsa.gov.uk/pages/register/
41259 09/12

								
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