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Buy To Let Flexible Features

Buy To Let mortgages are not regulated by the Financial Services Authority

Please read this page along with the buy to let mortgages product page.

Important Information - Buy to Let

Status

The amount we will lend you is based on the rent or expected rent. The rent or expected rent must be at least 125% of the loan multiplied by the initial rate. For example, if you want to borrow £80,000 on a Buy to Let rate of 6.00% the calculation would be £80,000 x 125% x 6.00% = £6,000. This means that the annual rental income must be at least £6,000 to qualify. Most types of residential property can be considered, however, freehold flats are not eligible for this scheme.

Tenancy Agreements

Properties may only be let on an Assured Shorthold Tenancy (AST) basis. Where we agree a mortgage when the property is already let or occupied before completion of our mortgage, all adult occupiers of the property must have a letting on an AST basis. In all cases DSS tenants will not be allowed.

Important Information - Student Buy to Let

Status

The amount we will lend you is based on the rent or expected rent. The rent or expected rent must be at least 125% of the loan multiplied by the initial rate. For example, if you want to borrow £80,000 on a Student Buy to Let rate of 6.00% the calculation would be £80,000 x 125% x 6.00% = £6,000. This means that the annual rental income must be at least £6,000 to qualify. Most types of residential property can be considered, however, freehold flats are not eligible for this scheme.

Tenancy Agreements

Properties may only be let on an Assured Shorthold Tenancy (AST) basis. Where we agree a mortgage when the property is already let or occupied before completion of our mortgage, all adult occupiers of the property must have a letting on an AST basis. In all cases DSS tenants will not be allowed.

Important Information - Holiday Buy to Let

Status

The amount we will lend you is based on the rent or expected rent. The rent or expected rent must be at least 150% of the loan multiplied by the pay rate. For example, if you want to borrow £80,000 on a Holiday Buy to Let rate of 6.00% the calculation would be £80,000 x 150% x 6.00% = £7,200. This means that the annual rental income must be at least £7,200 to qualify. Most types of residential property can be considered, however, freehold flats are not eligible for this scheme.

Buy to Let Restrictions

Holiday Let Product Restrictions

Property must have no restrictions to its use, and must be able to be used for residential purposes as well as a holiday let. Lending is restricted to areas with a recognised market for holiday lettings, including City lets e.g Edinburgh, York, etc. Proof of rent is required by way of confirmation from a recognised and reputable holiday letting company. Converted flats will not be considered for holiday lets.

Buy to Let Product Restrictions

Buy to Let loans are only available to individuals and exclude company lettings. The maximum number of Buy to Let mortgages with Scarborough Building Society is 1 Buy to Let property per individual/couple. Only purpose built flats will be considered. Property must be of standard construction. Lending is Restricted to England and Wales only. Applicant(s) must be permanent UK residents.

Holiday and Student Lets Applicant(s) must own their own residential property. Applicant(s) must earn at least £25,000 per annum from paid employment.

Features

Overpayments

An overpayment is a payment in addition to your normal monthly payment. You may make overpayments to your mortgage at any time but it is subject to limits during the initial product Tie-In Period. During the Tie-In Period you can make overpayments up to the level stated in the product description; the limit is generally up to 20% per annum of the original advance for 3 year products.

Capital repayments greater than the amounts specified can also be made but will be subject to the early repayment charge described in the product details. The overpayments will reduce your mortgage balance on a monthly basis and therefore, reduce interest costs. Subject to certain terms, you may be eligible to convert your overpayments towards reducing the term of your mortgage providing it is a Repayment loan.

Underpayments

An underpayment is any payment that is less than the normal monthly mortgage payment or a missed payment. You may make underpayments up to the maximum of any previously accrued overpayments (when not used to reduce the mortgage term). You need to give us one month’s notice and obtain our approval.

Payment Holidays

A payment holiday is an agreed period of time when you can take a break from making payments. You may take a payment holiday up to the maximum of any previously accrued overpayments (when not used to reduce the mortgage term). You need to give us one month’s notice and obtain our approval.

Switch to a Fix

Available on all Base Rate Tracker products. At any time during the mortgage you are eligible to transfer to any of our current fixed rate mortgages. You will not be eligible to transfer to any “Limited Edition” or “Exclusive” mortgage product. Conditions apply when choosing this option. Please ask for details.

Portability

These mortgages may be transferred to another property. If you decide to move you take your mortgage on the same terms and conditions to your new property. This feature is subject to customer qualifications and acceptable property valuation at the time a transfer is required.

Fee Free Legals

This feature is available for standard re-mortgages on properties in England and Wales. The fee free legal work relates to our legal fees and disbursements carried out by our chosen legal advisers, which fees are usually paid by you. The solicitors we choose will only act for us. They will undertake limited checks on the title to the Property to ensure we, as your mortgage lender, are protected. You may have to pay additional fees depending on loan size and your personal circumstances. For example, Land Registry fees in excess of £70 will need to be paid by you and removing or adding someone to or from the Property and the Mortgage will not be classed as standard work.

Further detail about this service is available on request, and will be contained in your mortgage offer.

Monthly Interest

Interest is calculated on a monthly basis.

Interest Rate Changes - Tracker Products

As the interest rates on these products are set at a certain level in relation to the Bank of England base rate, and as that rate is variable, the rate can move up as well as down during the period of the loan. If there is a change to the Bank of England base rate, your new rate will become effective seven days from the date of the base rate change. In the event the Bank of England base rate reduces during the life of the loan, the minimum variable charge rate during the life of the loan will be 3%. The annual percentage rate is 3.1% APR.

Restrictions

Early Repayment Charge

If the loan is redeemed or a transfer to an alternative product is agreed within the product Tie-In Period (detailed in the column marked ‘Early Repayment Charges and Tie-In Period’), then the full early repayment charge will be payable. The early repayment charge will be calculated as a percentage of the amount being repaid, as stated in the product description. After the Tie-In Period, products are not subject to early repayment charges and interest will then be charged up to and including the date of redemption. A Redemption Administration Charge will be payable if the loan is repaid at any time before the end of the agreed term. Please see our Mortgage Account Tariff for details.

Lending Terms

Remortgage

The property must have been owned by you for at least 6 months before you can make an application to us for a remortgage.

Types of Mortgage

These products can be made on a Repayment or Interest only basis. Loans can be repaid over a term of between 5 and 40 years

Minimum Loan

Unless stated the minimum loan for new borrowers is £25,000.

Minimum Valuation

The minimum property valuation we will lend on for buy to let is £50,000 (£75,000 in London), for holiday buy to let is £150,000, and for student buy to let is £100,000, unless product restrictions apply.

Maximum Loan to Value (LTV)

Unless specified otherwise the maximum LTV is 65%.

Maximum Loan & LTV (on purchase and re-mortgage)

LTV	Maximum Advance
65%	£500,000

Important Information

Products may be withdrawn at any time. Applicants must be aged 18 or over. In all cases the property will be security for the loan.

Suitable life assurance may be required. Written quotations available on request. All loans and benefits subject to status.

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