Professional Mortgage

To qualify for a Scottish Widows Bank Professional Mortgage you must be:

• Over 21 years of age
• A fully qualified and registered accountant, actuary, barrister, dentist, medical doctor, optometrist, pharmacist, solicitor (including trainees), teacher, or vet.

Professionals (including trainee solicitors) employed in a role outwith their qualification will be considered on an individual basis.  For example, a fully qualified accountant working as a senior finance manager would be considered for a Professional Mortgage. And being self-employed is no barrier to having your application accepted — in fact, many self-employed professionals find the flexibility of this mortgage ideally suited to their needs.

We assess each case individually rather than sticking to any rigid salary-based formula. And we also take into consideration whether you can afford the monthly repayments. But as a general guideline you could borrow:

• Self-employed — typically we will lend you 4 times your net annual earnings, and it is also likely that we will request information from your accountant.

Please note, when assessing the amount you can borrow, we will also take into consideration any 2nd properties (including holiday homes) and/or Buy to Lets either with Scottish Widows Bank or another lender.

Up to 90% of the purchase price or valuation of the property, whichever is the lower including costs. For new build properties the maximum you can borrow is 80%.

This can be made up as follows:

• Main Mortgage — this is the main loan account for the purchase/remortgage of your property. It can include any extra money you need at the very beginning for furniture, redecorating or whatever you choose, and can be for up to 90% of the valuation of your property.
• Mortgage Reserve Account — an additional drawdown facility which allows you to withdraw and deposit money, within a pre-agreed limit, at Scottish Widows Bank's Standard Variable Rate.

How long you take to pay back your mortgage is called the 'term'. And this is as flexible as every other aspect of our Professional Mortgage:

• Minimum term 5 years
• Maximum term 40 years or expected retirement age, whichever is earlier.

And with our flexible repayment options you may be able to pay off your mortgage earlier than expected too.

Taking out a Mortgage Reserve Account along with your Professional Mortgage can provide more flexibility in the way you manage your finances — and let you take payment holidays.

If your main mortgage is less than the maximum amount we allow you to borrow you can apply for a Mortgage Reserve Account. This can have any limit you choose, as long as you don't go over your agreed maximum.

So, for example, if we agreed to let you borrow £100,000 but you only needed a main mortgage of £80,000, you can apply for a Mortgage Reserve Account with a limit of up to £20,000.

The Mortgage Reserve Account is an addtional drawdown facility which gives you the freedom to withdraw and deposit money as you choose — with a £100 minimum — provided you keep within your agreed limit and can be operated by either internet , telephone or post to suit you.

No repayment is required on the Mortgage Reserve Account until the limit is reached. However, you should be aware that interest will continue to be charged on the outstanding balance on a monthly basis at our standard variable rate.

Taking out a Mortgage Reserve Account will increase the borrowing secured on your home.

If you choose our Professional Mortgage's offset facility a savings account is set up alongside your mortgage. Any money paid into that account is 'offset' against your mortgage — so, if you have a £200,000 mortgage and £30,000 savings, you will pay interest on only £170,000 of the mortgage.

There are two offset benefits you can choose from:

• Reduced term - this can allow you to pay off your mortgage early
• Reduced monthly payment - the term of your mortgage remains unchanged and your normal monthly mortgage payment is reduced instead.

Whichever option you choose, you could save thousands of pounds in interest payments. Try our offset calculator to see how you could benefit.

And by reducing the interest on your mortgage your savings are, in effect, earning mortgage rate interest — without attracting any tax.

For more information on offsetting take a look at How Offset works.

No, you can choose a fixed rate, variable rate or a combination of both.

With a fixed rate you have the reassurance of knowing that your monthly repayments will stay the same whatever happens to interest rates. This remains throughout the entire fixed rate period — and if you move house it can move with you too - subject to our lending criteria at that time.

You may prefer a variable interest rate which allows you to regularly overpay. This can reduce the balance of your mortgage more quickly, meaning you'll pay less interest and may even pay off your mortgage sooner.

Or you could benefit from the advantages of both and choose a fixed rate for part of your mortgage and a variable for the rest. It's your choice.

For more details check out the current interest rates.

You have a choice of repayment options with our Professional Mortgage — repayment, interest only and part repayment, part interest only.

If you choose the repayment option you will gradually pay off the amount you borrowed plus interest, over the life of the mortgage.

With an interest only mortgage you only make payments to cover the interest on the amount you borrow from Scottish Widows Bank. The full amount must be paid off in a lump sum at the end of the mortgage period. Please read the next question below called "Which repayment plans can I use for an interest only mortgage with Scottish Widows Bank?" for more information.

Whatever repayment method you choose it is a sensible idea to take out Life Cover. This can repay the amount outstanding on your mortgage should the worst happen, ensuring that your family does not lose their home too.

 In order to repay the capital, a lump sum is required at the end of the mortgage term. It is your responsibility to make sure you have a plan in place that will repay the amount you owe at the end of the term.

An interest-only mortgage is a higher risk than a repayment mortgage, as in most cases there’s no guarantee that you’ll be in a position to fully repay the capital amount you owe at the end of the term.

When you apply for an interest-only mortgage, we’ll ask you to provide copies of evidence that an appropriate plan is in place to repay the debt. We will ask to see the evidence regularly for review throughout the life of your mortgage until it is repaid.

We strongly recommend that you review your plans at least once a year. We’ll write regularly to ask you to provide us with a copy of evidence that your plans are on track to repay the capital amount that you will owe at the end of your term. If we’re not satisfied your plans are on track or you don’t provide evidence, we may change some, or all, of the mortgage on to a repayment basis and this will increase your monthly mortgage payment. We’ll write to you to confirm this will happen, and what your new monthly payment will be.

Depending on the interest rate you choose — fixed, variable or a combination of both — there may be a charge if the early repayment happens within a fixed or discounted rate period. For more details check out the current interest rates.

If you have a fixed rate up to 10% of the loan balance may be paid once a year by cheque without any early repayment charge.

If you decide to travel or work abroad you can take payment holidays — but only if a Mortgage Reserve Account is in place. Setting one up is easy to do and is subject to our lending criteria.

Your normal monthly mortgage payments will be collected from this account instead of your bank or building society. This means that the balance on your Mortgage Reserve Account will increase and interest will be charged on that amount.

If you are purchasing a property we have negotiated a very competitive fee structure with our surveyors — detailed in the table below.

Scottish Widows Bank requires 'first legal charge' over residential properties for all borrowing — this is Standard Security in Scotland.

A legal charge is a formal document that gives your lender certain repossession rights if you do not meet the terms of your mortgage contract. The first legal charge is given to the lender that gives you your main mortgage — which in this case would be Scottish Widows Bank.

Yes, you can view your Professional Mortgage using our Internet Banking service.

Internet Banking allows you to:

• Check your mortgage balance
• View details of recent transactions
• Make regular overpayments* towards your Professional Mortgage.
• Access your Offset Saver Account
• Access your Mortgage Reserve Account

And it's easy to register too — just complete the 'Internet Banking' question in your Professional Mortgage application form. Alternatively, please call 0845 845 0829 to register for this service. Our opening hours are 8am to 6pm Monday to Friday (Wednesday from 10am). When you call, you'll need your Professional Mortgage account number. We'll also ask you additional questions to verify your identity before setting up your access.

*available for variable, tracker and stepped discount mortgages only.

Scottish Widows Bank's charges are detailed in the Mortgage Rates Sheet and the Key Facts Illustration you will receive before you submit your mortgage application.

You can also download a PDF of our Tariff of Charges (pdf 68k). And if you need further help call us on 0845 845 0829 (calls charged at local rates).