After-sale shared equity procedures: guidance

Guidance to cover after-sale procedures in relation to Scottish Government’s various shared equity schemes.

3. Change of Lender

Where an owner wishes to remortgage and/or move to another lender, the RSL should send out a copy of the letter/email set out in Annex 2(A) together with the form set out in Annex 2(B). This will among other things establish if there is any element of additional borrowing in excess of £2,000 over the original amount borrowed from the Primary Lender at the outset of the transaction. If there is, please refer to Section 4.

If there is no additional borrowing in excess of £2,000, then as it is a re-mortgage and not a loan from the Existing Lender there will be no requirement for a Valuation and Harper Macleod should be instructed in terms of the correspondence set out in Annex 2(C). Harper Macleod will then prepare a new Ranking Agreement for execution by the owner, the new lender and Scottish Ministers.

The RSL should provide the shared equity owner with information on what their fees will be. These will be payable in advance and are non-refundable.

There is no need for the RSL to contact the Scottish Government More Homes Supply Division.

Harper Macleod will advise the RSL when the matter has been completed.

In some cases when changing a mortgage product with an existing lender, the lender may require a new security to be entered into. In this circumstance the process should proceed as outlined above for a change of lender.


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