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.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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 4% 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.

How You Are Protected

Peterkins is authorised and regulated by the Financial Conduct Authority (FCA), 25 The North Colonnade, Canary Wharf, London, E14 5HS.

Our Financial Services Register number is 113007. Our permitted business is advising on and arranging pensions, savings and investment products, non-investment insurance contracts and mortgages. You can check this on the Financial Services Register by visiting the FCA's website www.fca.org.uk/firms/systems-reporting/register or by contacting the FCA on 0800 111 6768.

Please be aware that by clicking on to the above link you are leaving the Peterkins website. Please note that Peterkins is not responsible for the accuracy of the information contained within the linked site accessible from this page.

Unless we notify you in writing to the contrary, we will be treating you as a retail client. This means that you are afforded the highest level of protection under the regulatory system and should have the right to take any complaint to the Financial Ombudsman Service.

Complaints

If you are dissatisfied with a recommendation we have made you are entitled to make a complaint. We have a complaints procedure that is available on request. If you wish to register a complaint, please contact us:

In writing: Hartley Lumsden, Peterkins, 100 Union Street, Aberdeen, AB10 1QR

By phone: +44 (0) 1224 428000

By email: maildesk@peterkins.com

Please be assured we treat complaints seriously. For your further protection if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service ('FOS'). Full details can be found on its website at www.financial-ombudsman.org.uk.

Please be aware that by clicking on to the above link you are leaving the Peterkins website. Please note that Peterkins is not responsible for the accuracy of the information contained within the linked site accessible from this page.

Disclaimers

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

The Financial Conduct Authority do not regulate some forms of mortgages.

There may be a fee payable for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to £1,000 and the typical fee is £500 or less.

The Financial Conduct Authority do not regulate tax, IHT, wills and trusts.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren't able to resolve themselves. To contact the Financial Ombudsman Service please visit www.financial-ombudsman.org.uk.

Please be aware that by clicking on to the above link you are leaving the Peterkins website. Please note that Peterkins is not responsible for the accuracy of the information contained within the linked site accessible from this page.