Mortgages guides 📖
Free, impartial, guides to Mortgages for first-time buyers in Scotland
Mortgages guides 📖
Learn how Critical Illness Cover can provide a financial safety net when faced with serious health conditions
...Mortgages terms explained 📚
Learn how an Agreement in Principle can fast-track your mortgage application, make you a credible buyer in the eyes of estate agents and sellers, and help you secure your dream home
...Mortgage arrears occur when a borrower fails to make required mortgage payments on time. Once a payment is missed, the borrower is said to be “in arrears.” It’s important to note that falling into mortgage arrears can have serious consequences. The lender may charge late fees, and if the situation isn’t addressed, it can lead …
The Bank of England is the UK’s central bank. The Bank of England is responsible for Its mission is to promote the good of the people of the United Kingdom by maintaining monetary and financial stability.
...What is the base rate? The Bank of England base rate, also known as the ‘Bank Rate’, is the interest rate that the Bank of England lends money to banks and financial institutions in its capacity as the central bank. Why does the base rate matter? The base rate used as the benchmark for interest …
What is a bridging loan? A bridging loan, in the context of residential property, is a short-term financing option designed to “bridge” the gap between the purchase of a new property and the sale of an existing one. It allows homeowners to buy a new property before selling their current one. These loans typically last …
What is a Building Society? A building society is a financial institution that is owned by its members. These institutions are similar to banks in that they provide banking and related financial services to their customers, but they primarily focus on providing home mortgage loans. Members of building societies are usually savers and borrowers. Unlike …
Buildings insurance is a type of property insurance that covers the cost of repair or rebuild in case your home gets damaged. This can be due to various events, such as fire, storm, flood, subsidence, burst pipes, vandalism, or other unforeseen incidents. It’s important to note that buildings insurance typically only covers the structural aspects …
What is a central bank? A central bank is a financial institution responsible for managing a country’s currency, money supply, and interest rates. It’s typically the regulator of the country’s financial system and its commercial banking system. For more on the UK’s central bank and what it does, see our article article on the Bank …
Learn why this deadline is crucial and how it shapes the bidding process
...Contents insurance is a type of insurance that covers the cost of replacing your belongings in your home if they are damaged, destroyed, or stolen. These are typically items of movable property that you’d take with you if you were to move house, such as furniture, clothing, electronics, appliances, and personal items. Coverage can vary …
What is Conveyancing? Conveyancing is the legal process of transferring ownership of a property from one person (the seller) to another (the buyer). It involves various steps to ensure that the buyer obtains a good and marketable title to the property, free from any issues or encumbrances. Who can convey a property from one owner …
Learn what council tax is, the essential services it funds, and how much you’ll have to pay
...Learn what a Credit Reference Agency is and why it might hold the keys to your mortgage approval.
...Learn the importance of a damp-proof course in preventing rising damp and why it’s crucial to maintain it for your property’s health
...What is the Date of Entry? The Date of Entry is the pre-agreed date on which you get the keys to your property and can move in. This date will be set out in the contract between you and the seller, known as the “missives.” Why is the Date of Entry important? Once the money …
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...In most cases banks or Building Societies will not lend a borrower the full purchase price of a property. The buyer will have to come up with some of the money themselves. A deposit, also known as a down payment, is the upfront payment that a buyer makes towards the purchase price of the property. …
The term “discharge” refers to the formal process by which a secured debt, like a mortgage, is removed or cleared against a property. In essence, it signifies that the mortgage or loan that was secured against the property has been fully repaid, and the lender’s claim on the property is thereby extinguished. What is being …
What is a disposition? a “disposition” is a legal document that transfers ownership of heritable property from one person to another. Essentially, it’s the Scottish equivalent of a ‘deed of transfer’ in other jurisdictions. When someone buys a property in Scotland, they will receive a disposition from the seller, which conveys the property to the …
Learn what dry rot is and why you should look out for it when inspecting a property
...Early repayment of a mortgage occurs when you pay off your mortgage before the end of the agreed-upon mortgage term. This can involve making regular overpayments or paying off the entire outstanding balance in one lump sum, perhaps using money from savings, an inheritance, or the sale of another property. While early repayment can result …
What are Early Repayment Charges? An Early Repayment Charge is a fee that mortgage lenders may charge if you pay off your mortgage earlier than agreed. An early repayment charge could be triggered if you make overpayments beyond the agreed limit or if you pay off the entire mortgage balance before the end of the …
An emergency fund is a store of money put aside by a household to be used in the event of emergencies. The optimal size of an emergency fund depends on individual circumstances and how unpredictable the future looks but a good goal is 3-6 months worth of household expenses. Examples of emergencies might be a …
Encumbrances An “encumbrance” refers to any claim, liability, charge, or restriction on a property that may affect its value or use, or the rights of the owner. Encumbrances can be financial or non-financial. Here are some common types of encumbrances related to Scottish property: Before purchasing a property, it’s crucial to conduct thorough searches and …
Learn what an ‘endorsement’ means in insurance terminology. The amendments that can either expand or restrict your insurance coverage,
...Discover the importance of Energy Performance Certificates in Scotland. Learn how EPC ratings impact your home’s market value and future energy costs
...For more information see our article on cladding or the scottish government working group on cladding and mortgage lending
...Learn what “excess” means in an insurance policy, the difference between Compulsory and Voluntary Excess, and how your choice can impact both your premiums and out-of-pocket costs in the event of a claim
...Learn how the fine print in your insurance policy could mean the difference between full coverage and financial loss.
...What is a property factor? A property factor, also known as a property manger, is a person or company who has been contracted to maintain a common area of land or property that is owned by more than one person. Registered social landlords and Local authorities can also act as factors. Factors are most commonly …
A final acceptance is the last stage in the offer and acceptance process. When an offer is made on a property the seller will typically come back with a qualified acceptance (Although they could reply with a rejection or a straight acceptance). Once all the points raised in the seller’s qualified acceptance have been negotiated …
What is a first-time buyer? A first-time buyer is a person who is purchasing a property for the first time. Why do first-time buyers need extra assistance? First-time buyers need extra assistance because they are new to the property market. They have limited experience in navigating the process of buying a home and are more …
Learn what a fixed-rate mortgage really means for you as a first-time buyer. Discover the pros, cons, and how to determine if it aligns with your homeownership goals.
...A gifted deposit refers to a sum of money given to a buyer, usually by a family member, to help them purchase a property. A gifted deposit acts as part or all of the deposit required for the mortgage. When it comes to gifted deposits in Scotland, there are several considerations and rules to keep …
A guarantor mortgage is a type of mortgage designed to help individuals who might not otherwise be able to secure a mortgage on their own, often due to a limited credit history, a small deposit, or insufficient income. To overcome these hurdles, a third party (usually a close family member) acts as a guarantor. What …
Guppies is a phrase coined by property listing website Zoopla to describe affluent high earning professionals, who have given up on the prospect of ever owning their own home. The phrase originated from a 2023 research report where Zoopla Found that more that 40% of under 40’s had given up on owning their own home …
Heritable fixtures and fittings are fixtures and fittings that are part of the of heritable property bring purchased
...“heritable property” refers to what is known in many jurisdictions as “real property” or “real estate”. It encompasses land and buildings, as well as any fixtures or fittings that are so integrated with the land or buildings that they are considered part of them. This is in contrast to “moveable property,” which includes items like …
The Scottish Government’s Home Owners’ Support Fund consists of two schemes designed to help homeowners who are at risk of losing their homes because they are in mortgage arrears or cannot pay their secured loans: To be eligible for the scheme, there are certain criteria that homeowners need to meet, including: The idea behind the …
a Home Report is a pack of documents that anyone selling a residential property in Scotland must provide to prospective buyers. It became a legal requirement in 2008 with the enactment of the Housing (Scotland) Act 2006. Its primary purpose is to provide potential buyers with detailed information about a property before they decide whether …
Homes for Scotland is an industry lobby group representing house builders in Scotland. They state that their aim is to identify barriers to the delivery of more home in Scotland and set out actions that can be taken to tackle them Visit their website to learn more about Homes for Scotland
...Learn how the principle of indemnity affects your insurance coverage, ensuring you’re financially restored but not enriched after a loss.
...Learn why an insurance policy could be the most important contract you’ll ever sign
...Learn what an insurance premium is and how it’s calculated
...Learn how Japanese Knotweed can jeopardise your mortgage, insurance, and even home value
...A Key Facts Illustration, also known as a mortgage illustration, is a document that you must be provided with before you make a decision to take out a mortgage. It provides important information about a mortgage in a standard format, so that you can easily compare different mortgage products from different lenders. The key facts …
Learn what LBTT is, how it’s calculated, and the relief options available for first-time buyers
...What is a letter of obligation? A “Letter of obligation” is a formal, binding, written commitment provided by one solicitor to another. It is an essential tool in the conveyancing process and provides assurance between legal professionals about specific actions or matters to be addressed after the completion of a property transaction. What is the …
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...What is Loan-to-Value (LTV)? Loan-to-Value is a ratio that represents the size of your mortgage in relation to the value of the property you’re buying. For example, if you’re buying a property worth £200,000 and you have a deposit of £40,000, you would need a mortgage of £160,000. Your LTV would be 80% LTV is …
Local authority, also know as a local council or local government…
...Learn what manual underwriting is and how it could be your alternative path to securing a mortgage
...For a first-time buyer in Scotland, the term “missives” might sound unfamiliar, but it’s a crucial concept in the Scottish property buying process. The term “missives” refers to the formal exchange of letters between the solicitors of the buyer and the seller, concerning the terms and conditions of the property sale. These letters will cover …
A mortgage affordability test (or check) is a process used by lenders in the UK to determine how much money they will lend to a prospective homebuyer. This check was introduced following the Mortgage Market Review (MMR) in 2014 by the Financial Conduct Authority (FCA), with the aim of ensuring that borrowers can afford their …
The “Mortgage Charter” is a set of standards that mortgage lenders and the Financial Conduct Authority agreed to adopt in the summer of 2022 to residential mortgage borrowers struggling with higher rates. Key provisions in the charter include: In addition to these, the charter introduces special agreements starting from late June: The government has also …
The Mortgage Conduct of Business (MCOB) rules are a comprehensive set of guidelines and regulations that mortgage lenders and intermediaries in the UK must follow to ensure the fair treatment of customers. The MCOB rules cover a wide range of activities, from the initial promotion and advertising of mortgage products, through the advice and selling …
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...What are mortgage overpayments? Mortgage overpayments are additional payments you can make on top of your regular monthly mortgage payment. Overpayments can either be regular or one off. When you make an overpayment, the extra money usually goes towards paying off the mortgage principal (the amount you borrowed) rather than the interest. This can reduce …
What is a mortgage payment holiday? A payment holiday is a temporary period during which a borrower is allowed to pause or reduce their mortgage payments without being considered in arrears. This arrangement is typically agreed upon with the lender for a specified duration, usually in response to financial difficulties or unexpected circumstances. How long …
When you take out a mortgage, you agree to pay back the borrowed amount (the principal) plus interest over a specific number of years – this is your ‘mortgage term’. Common terms are 15, 20, 25, or 30 years, but other durations are also available. How Different Terms Affect Your Monthly Payment: Example: Let’s simplify …
In Scots law, movable property refers to anything that isn’t heritable property (real estate). This can include a wide variety of items, including: Tangible personal property: This includes items like furniture, vehicles, jewellery, artwork, and other physical objects that can be moved from one location to another. Intangible personal property: This includes things like stocks …
Negative equity refers to the situation where the outstanding balance of your mortgage is more than the current market value of the property. It means that if you sold your property, you would not be able to fully pay off the mortgage from the proceeds. Negative equity can occur when property prices fall, meaning that …
What is an offer? In Scotland, an “offer” refers to the formal written proposal made by a potential buyer’s solicitor to the seller’s solicitor. This proposal outlines the terms under which the buyer is willing to purchase the property, including price, date of entry, and any other conditions or stipulations. Once the seller’s solicitor responds …
The “offers over” system is a distinctive feature of the Scottish residential property market. Here’s a breakdown to help you understand it: What is the “Offers Over” system in a Scottish property sale? When a property is advertised with an “offers over” price, it means that the listed price is the minimum the seller hopes …
Learn how to spot the signs of penetrating damp and why it’s crucial to address it promptly.
...What is Porting a Mortgage? When you’re ready to sell your first home and buy your next one, you will have several options when it comes to what to do with your mortgage. One of those options is to ‘port’ your mortgage from your old property to the new one. The term porting can be …
What is mortgage principal? The term “mortgage principal” refers to the initial amount of money you borrow from a lender to buy a property. In other words, if you were buying a house priced at £200,000 and you had a deposit of £50,000, you would need to borrow £150,000 from the lender. This £150,000 is …
Learn what a property questionnaire is, what information is in it, and where to find it
...A qualified acceptance is what you will receive when the seller is willing to accept your offer but wants to make some changes to the terms first. These changes might relate to the price, the date of entry, or other aspects of the transaction. A qualified acceptance means that your offer has been generally accepted, but …
Registered proprietor is a term you will find used on title sheets within the Land Register of Scotland. It refers to the individual, company, or entity that is officially recognised as the owner of a specific piece of land or property. When a property is sold, the title sheet will be updated to remove the …
The National Registers of Scotland (RoS) is a key entity you’ll encounter during the property buying process. The Registers of Scotland is the public body responsible for compiling and maintaining public records related to property, people, and other legal documents in Scotland. It is the official “record keeper” of who owns what land and property …
Repossession refers to the legal process by which a lender takes ownership of a property due to the borrower’s failure to meet mortgage repayments. It is a way for the lender to recover some, or all, of the money they lent to the borrower. Here’s a step-by-step guide to the process 1. Missed Payments Before …
Learn how to identify the signs and symtoms of rising damp.
...Learn what the RICS is and the role they pay in surveying
...The Scottish Standard offer is the name for a formal written offer to buy a residential property made using the Scottish Standard Clauses. It is a legal document containing the detailed terms and conditions under which a buyer is prepared to purchase a property. The aim of the standard offer is to make it simple …
Scottish Water is a statutory corporation that provides water and sewerage services in Scotland. It is publicly owned, answerable to the Scottish Parliament and the people of Scotland, and its objectives are set out in the Water Industry (Scotland) Act 2002. Scottish Water is responsible for: Unlike water companies in England and Wales, which are …