Post Sales Information for Buyers

Remortgaging

Remortgaging is the term used when you would like to switch mortgage lender without increasing your borrowing. If you want to proceed with this transaction consent is required by the Scottish Government.

When you re-mortgage your home, your new lender must be a qualifying lending institution (e.g. a bank or building society) and the new mortgage must be a repayment mortgage (meaning that you must be required under the mortgage to make payments of interest and capital which are designed to repay the mortgage over the stated time). You may not remortgage your home and take out an interest-only mortgage.

Please note: if you are looking to change your lender AND you wish to take out further borrowing which is over and above the amount you originally borrowed, please inform the administering agent dealing with your request as this is a different process.

An independent valuation will have to be carried out to determine the current value of the property. Your administering agent can arrange this on your behalf or you can go to any RICS-registered surveyor, provided they are willing to produce a Letter of Reliance which allows the Scottish Ministers to also rely on the terms of the valuation report. From the valuation report it can be worked out if there is adequate equity in your property to support your additional borrowing. This means that the value of the property must have increased sufficiently so as not to infringe on the Scottish Ministers’ equity stake. If the value of your property has increased, the administrative agent will proceed with seeking approval from the Scottish Ministers for the additional lending.