Royal Bank of Scotland Mortgages Review – From First Time Buyers to...

Royal Bank of Scotland Mortgages Review – From First Time Buyers to Property Investments

Screenshot of the Royal Bank of Scotland Mortgages Home Page
Royal Bank of Scotland
Screenshot of Mortgage Options Royal Bank of Scotland

Buying a home can be a daunting experience, especially when weighing up the various mortgage options. Mortgages provide customers with the finance needed to purchase their property. It also happens to be a long-term commitment that requires customers to adhere to the conditions for a very long time. Royal Bank of Scotland Mortgages provides customers with a variety of options for the various property ownership stages. This review takes a closer look to see how RBS measures up to its competitors.

Deutsche Bank has a pretty impressive mortgage selections. Read here to find out whether this was a good review.

About Royal Bank of Scotland

Royal Bank of Scotland
Screenshot of the History of Royal Bank of Scotland

This is a bank that has stood for generations, providing customers with the latest trends in products. It also happens to be the first bank to offer a house purchase loan in the UK. Founded by royal decree in Edinburgh in the 1700s, the bank has come a long way from its humble beginnings.

Some of the highlights in the RBS history include the overdraft facility and full-service internet banking. The bank is known for superb loan ranges and customers can bargain on a good rate with RBS. Unfortunately, not everything is peachy at the bank. After the 2008 global financial crisis, RBS had to rely on a government bailout to stay afloat. The rights issue with Sir Fred Goodwin was another matter that clouded the bank’s reputation. This resulted in revenue losses, which in turn forced the bank to resort to job cuts and other means of cost cutting to remain afloat.

Currently, the bank is still in a precarious position and only time will tell whether RBS will pull through. With a strong history and good customer base, it seems more likely than not. They will need to focus on capturing the market in order to remain sustainable.

We recently did a full review on Royal Bank od Scotland. Read it here.

Royal Bank of Scotland Mortgages Product Offerings

Royal Bank of Scotland
Screenshot of Mortgage Options Royal Bank of Scotland

First-Time Buyers

This is for customers who are experiencing the mortgage process for the first time.

  • Customers have access to unique and customized mortgage calculators specifically designed for first-time buyers. Furthermore, this tool will help them calculate their installments and final repayments. They will also have access to the current rates available.
  • An Agreement in Principle allows customers to find out how much they qualify for before they go out to look for a property.

95% Mortgages

This option is suitable for those who have a deposit of maximum 5% available. Furthermore, this product is available to those over the age of 18.

  • This loan type allows customers to borrow up to 95% of the value of the property.
  • Customers who wish to use the rest of the savings towards other costs, now have the option to do so.
  • This loan type is specifically for those who wish to purchase a residential property.
  • Furthermore, this is ideal for first-time buyers. However, those who are moving house or buying a second residential property may also qualify.
  • Also, the mortgage must be taken out on a capital and interest repayment basis. This means that it can’t be on an interest basis only.
  • The loan type is suitable for properties valued under £600,000.
  • Finally, the property must not be a new build home.

Cashback Mortgages

This is the ideal mortgage for those who want to get something more out of their mortgage. Furthermore, this product is suitable for first-time buyers.

  • This loan type offers a max LTV of 90%, which means customers will have to furnish the other 10%.
  • Customers have access to an online tool that will help them compare mortgages and monthly repayments. Also, customers will see the rates offered to first-time buyers as well.
  • Also, this loan gives customers the opportunity to get an Agreement in Principle.

Moving Home

This option allows customers to focus on the move while the bank takes care of the mortgage.

Help to Buy Equity Loan

This loan type is ideal for the first time buyer and those who wish to purchase a new build property. This loan assists those who can’t afford the 100% mortgage on a loan. The equity scheme makes it a little more affordable for clients. This does not mean that the government owns part of the house, as the customer will still own the property. It just makes the mortgage a little easier to manage.

Remortgage Deals

Customers who wish to take their mortgages over to Royal Bank of Scotland will find this a suitable option.

  • Customers benefit from free legal and valuation fees. Exclusions may apply.
  • Furthermore, customers receive award-winning service.
  • The loan application can be done online, in the branch, or by phone.

Buy to Let Mortgage

This option is for those who wish to purchase another property or change up their existing deal. Furthermore, customers can apply for an agreement in principle to see how much they qualify for.

  • This product is available to UK residents aged between 18 and 70.
  • Furthermore, customers are required to have 25% deposit for ordinary residential homes. They require 35% for new build houses or flats.
  • Also, the loan amount must be at least £25,000 over a minimum period of 3 years.
  • The product is available to those who don’t own more than 9 Buy to let properties. Also, the maximum borrowing amount cannot exceed £3.5 million.
  • The property must be habitable and worth at least £50,000. The maximum value of the property shouldn’t be more than £500,000.
  • Finally, customers can apply online or book an appointment at the branch.

Aspects to Consider Before Signing Up for a Mortgage

Royal Bank of Scotland
Screenshot of Mortgage Help and Support Royal Bank of Scotland

There are a number of reasons potential homeowners may want to get out of the renting game and own their own property, however, there are a few points to consider before making this bold step.

  1. Renters don’t have to worry about the maintenance of the building and even some of the interior items. Although there is the obligation not to do any damage, when something breaks due to age etc, the owner of the property needs to have a look.
  2. Those who rent a flat or a property that forms part of a body corporate or share block won’t have to worry about the levies. The owner will need to take care of those, as well as the property rates and taxes.
  3. General maintenance is also performed by the owner of a property.
  4. A mortgage is a long-term commitment, and borrowers need to ensure that they are able to commit to all the terms and conditions of the loan. Loan agreements of this nature usually run between 20 to 30 years. However, many run for a minimum of 3 years and should be discussed upfront.
  5. Those who wish to pay their property in advance or settle it early may face early settlement charges.
  6. Many lenders require future homeowners to put down a deposit of at least 10%. There are different loan types where customers can avoid the deposit.

What We like About Royal Bank of Scotland Mortgages

There are a number of different options that make it easier for customers from all walks of life to apply for mortgages. From those who can’t afford the full 10% deposit, to those who might not be able to afford a 100% installment on their mortgage.

Furthermore, the mortgages are structured in a way to accommodate the needs of the clients. Customers have access to structured facilities that provide them with their specific requirements. Customers who are not sure about their affordability, their rate, or how much they qualify for can apply for an approval in principle and then go out to look for a property that matches their price range.

Also, RBS is known to provide some of the best mortgage rates. It is also known for its exemplary service in the mortgage division.

Finally, the loans are simple and easy and can take place online. Those who prefer face to face contact can schedule an appointment in the branch.

What We Don’t Like About Royal Bank of Scotland Mortgages

This is something we don’t like about mortgages in general and that is that customers pay an early settlement fee.

Customers who would rather put their surplus funds into savings should read what Royal Bank of Scotland has to offer here.

Critical Reviews Rating Royal Bank of Scotland Mortgages – 10 of 10

Royal Bank of Scotland shows once again why it’s considered one of the lending stalwarts in the UK. The mortgage packages are carefully packaged to provide a bespoke solution to each client. Furthermore, customers benefit from great rates and there are options for those who struggle to make up the deposit amounts or affordability on the full mortgage.

These loans are part of the reason why customers still stick with RBS. If they manage to pick up their other product ranges to match their loans, RBS will be unstoppable. The only negative feedback on the mortgage packages is that there is a penalty on the early settlement of the bonds. This, however, is something that comes across at most financial institutions.