Mortgages, Life and Protection Insurance

Mortgages

Simply put, a mortgage is a loan taken out to purchase land or property. At Peterkins, our whole of market mortgage advisors advise on a comprehensive range of mortgages from across the market, but not deals that you can only obtain by going direct to a lender. Our advice will be based on the most suitable mortgage product included within the range available to intermediary firms. We listen to personal needs, provide honest and impartial advice, and guide you through the mortgage application process from start to finish, keeping you updated on the progress.

In the present mortgage market, you will require a minimum deposit of 5% of the property’s value to get a mortgage. However, if you save for a higher deposit, the amount you need to borrow from a lender will be less.

Alternatively, you may be looking to remortgage your home. Remortgaging is where you take out a new mortgage on a property you already own, either to replace your current mortgage, or to borrow money against your home. Our experienced advisors are there to provide the best solution for you by assessing whole of market products and taking into consideration all your circumstances.

It should be noted that every lender will require a basic valuation on the property.

If you are aged over 55, you may wish to do an equity release, where you can access the equity (cash) tied up in your home. This scenario requires serious thought and analysis, please ask for our guidance if this is an option you are considering.

Land & Building Transaction Tax in Scotland

LBTT is a tax applied to residential and commercial land and buildings transactions (including commercial purchases and commercial leases) where a chargeable interest is acquired.

The Scottish Government proposed to raise the tax-free limit for properties purchased by first-time buyers up to £175,000.

The LBTT rates are shown below:

Purchase Price LBTT Rate
On that portion of purchase price
Up to £145,000 0%
Above £145,000 to £250,000 2%
Above £250,000 to £325,000 5%
Above £325,000 to £750,000 10%
Over £750,000 12%

To give an example, if a house is bought for £290,000, which is evidently above the nil rate tax band of £145,000, then LBTT would be charged at:

  • 0% for the first £145,000
  • 2% for the next £105,000
  • 5% for the next £40,000

Therefore £4,100 is owed in LBTT.

If you'd like to find out more about how much LBTT you would pay, please try our easy to use LBTT calculator.

Additional Dwelling Supplement

The Land and Buildings Transaction Tax (Amendment) (Scotland) Act 2016 provides an Additional Dwelling Supplement (ADS) of LBTT which must be applied on an additional purchase of residential property in Scotland, such as a second home or a buy-to-let property. ADS is calculated at 3% of the purchase price on purchases of £40,000 or greater and is payable in addition to any LBTT.

Life & Protection Insurance

There are a range of insurance products for you to consider when financial planning. It can be a challenging task to select the appropriate type and level of insurance to take without discussing matters with a financial professional. Luckily, Peterkins are here to advise on insurance.

Some of the most common types of policies available include:

  • Life & Critical Illness Cover; the main difference between these two is that life insurance pays out a lump sum when you pass away, whereas critical illness cover pays out if you are diagnosed with a life-threatening illness.
  • Buildings & Contents; where buildings insurance covers the physical structure of the property such as the walls, floors, and roof, whereas contents insurance covers objects inside the property including electrical appliances, fixtures, furniture and so on.
  • Accident & Sickness; a type of income protection insurance that substitutes your income if you cannot work because of illness or injury.