How bridging differs in Scotland
In Scotland a lender's security is a standard security rather than a legal charge, and it is registered in the Land Register of Scotland, kept by Registers of Scotland. The lender needs Scottish solicitors to act, and the buying process runs through missives, the exchange of letters that forms a binding contract.
The tax is also different. Land and Buildings Transaction Tax applies instead of Stamp Duty Land Tax, with an Additional Dwelling Supplement on many second homes and investment purchases, including those bought by companies. Your solicitor will confirm what applies, but it needs to be in your budget.
Because of these differences, some lenders that are active in England and Wales do not lend in Scotland at all, and others use a panel of Scottish solicitors. A few lenders offer dual representation in Scotland, where one firm acts for both borrower and lender on straightforward residential cases, which can save time and cost.
Location matters
Lenders' coverage of Scotland varies more than in England. On our panel:
- Some lenders cover all of Scotland, including the Highlands and Islands, with no postcode restrictions
- Several lend on mainland Scotland only, or exclude rural and island locations
- At least one lender's guidance limits Scottish lending to the main cities
- A few exclude particular postcode areas
We check each lender's coverage against your property's postcode before approaching it, so you do not lose time on lenders that cannot help.
Licensing and letting rules
If the property will be let, Scottish rules apply. An HMO licence is needed where three or more unrelated people share, short-term lets need a licence from the local council, and residential lettings use the private residential tenancy. Landlords must be registered with the local authority.
Lenders and refinance lenders will want the property to meet these requirements, so allow time in the bridge for any licence application.
Arranging a bridge on Scottish property
We compare lenders on coverage, loan to value, rate and legal process, then approach those that fit with a clear case. Instant Quotes lets you choose Scotland as the location and shows lenders that lend there, as a starting point. Final terms depend on each lender's valuation, legal checks and coverage for the exact address.
If you or your family will live in the property
If the borrower is an individual or the trustees of a trust, and the property is, or will be, lived in by you or a close family member, the loan is a regulated mortgage contract with additional protections. We will tell you at the outset if that applies and how your case will be handled.
Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
