HOME LOANS

HOME LOANS
Terms & Conditions

Bank of Scotland plc
Home Loans
Terms And Conditions
The terms and conditions set out below apply to any Offer of mortgage loan ("Loan") by
the Bank which refers to this booklet. A borrower ("Borrower") is any person, whether
singly or jointly, to whom the Loan is to be made available as specified in the Offer.
We will advise you in writing at the earliest opportunity of any significant change to the
Terms & Conditions applicable to your Loan.
1. Conditions For Drawing The Loan
1.1 Before you can use the Loan offered:
(a)
(b)
(c)
(i)
(ii)
(iii)
(iv)
(v)
you must provide us with a valuation of the property which is being purchased/
re-mortgaged ("the Property"). The terms of the valuation must be acceptable to us.
The terms of the Certificate of Title (to the Property) must be acceptable to us;
you must return the signed acceptance of the Offer and, in doing so, you confirm that:
no other loan or security agreement will be breached as a result of your acceptance of
the Offer and use of the Loan;
you are not involved in any court proceedings;
no event of default (see paragraph 5 of this booklet) has occurred; and,
the information provided by you to us in respect of your loan application is correct and
there have been no material changes in your financial circumstances.
No third party has or claims any financial, equitable or beneficial estate or interest in
the property to be mortgaged.
2. Early Repayment Of The Loan
2.1 The Loan may be repaid earlier than a specified date in the Offer. In the event that a
fixed rate of interest applies to the Loan, early repayment of the Loan in the period in
which the interest rate is fixed will incur an early redemption fee. Please consult the
Notification of Administration Fees and Charges leaflet for further details of this fee.
If the Loan is repaid outside the fixed interest rate period or if a variable interest rate
applies to the Loan, no redemption or other administration fees will be payable on
early redemption.
2.2 Following a partial early repayment of the Loan repayable by the annuity method,
unless we specifically agree otherwise, we shall recalculate the monthly repayments
on the basis that the term will remain the same.
2.3 A full or partial repayment of cleared funds is effective immediately, otherwise seven
days clearance of funds is required. Application of the partial repayment will reduce
the outstanding balance of the Loan. Interest will be calculated on the new balance. A
new monthly interest payment/repayment instalment will be requested with effect from
the next monthly payment date after the end of the month in which the partial payment
occurs.
2.4 If only part of the Loan is repaid early you shall ensure that the repayments/interest
payments required under the Offer shall continue to be paid until all remaining sums
due under the Offer have been paid.
2.5 Any sums repaid early may not be redrawn.
2.6 The minimum amount allowed for partial repayments is 1,000.
3. Interest
3.1 You will pay interest to us on the amount of Loan outstanding from the date on which
the funds are released. When the Loan is drawn, we will request from you an initial
interest payment to cover the period from the date the Loan is drawn to the last day of
that calendar month. Thereafter, monthly interest payments/repayment instalments will
be collected at monthly intervals, commencing on the date specified on your mortgage
application form. The monthly interest payable is calculated on the first of the month on
the outstanding balance at the end of the previous month and debited to the account
on the last day of the calendar month.
3.2 Interest payments will be collected by direct debit from your bank account and you
will complete direct debit instruction forms as required by the Bank from time to time.
You will not cancel these instructions before all the amounts due under this Offer have
been paid in full.
3.3 We will give you notice of any change in the rate at which interest is to be charged.
The interest rate applied to the Loan will be altered with effect from the date specified
in our notice. A new interest payment/repayment instalment will be requested with
effect from the next monthly payment date after the end of the month in which the
alteration in the interest rate occurs. You will be liable to pay the interest specified in
such notice from the date specified in the notice until a further notice is issued. This
does not apply during the period that a fixed rate of interest applies to the Loan.
3.4 The interest type is that stated in the Particulars of Offer or as agreed in writing with
us from time to time. Any change to an alternative interest type from a fixed rate
of interest during a fixed interest rate period (including a move to a different fixed
rate and/or fixed rate period) will incur a fixed rate break fee equivalent to the early
redemption fee and calculated using the early redemption fee formula outlined in the
Notification of Administration Fees and Charges leaflet.
4. Security
You will grant to us, in security of the Loan and interest thereon, a security over
the Property in a form acceptable to us. The security will be by way of a first Legal
Mortgage (Mortgage).
5. Events Of Default
5.1 We may declare that an Event of Default has occurred upon or at any time after the
happening of any of the following events:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
You fail to pay, for a period of three months, any sum on the due date for payment
under this Offer or any other sum due or payable to us.
You are in breach of any of the terms and conditions on which this Loan is made or of
any of the security documents.
If we discover that any information provided by you (whether in relation to the
purchase price or valuation of the property) either before or after the acceptance of
the Offer is untrue.
If you fail to pay the premium on any insurance relating to the property or mortgage
protection insurance/or level term insurance assigned to the Bank as security or any
endowment policy assigned to the Bank as security.
If you die, or a petition is presented for your bankruptcy or sequestration.
If any distress, execution or other legal process is levied or enforced or sued out
against any of your assets.
Any person takes possession of, or a receiver is appointed over, the whole or any
part of your assets;
You stop or delay payment of sums due or you are unable to pay debts as they
fall due or it is believed that you are unable to pay sums due or you are deemed
apparently insolvent under insolvency legislation.
Where there is more than one Borrower, one or more of you leaves the Property and
we are not satisfied that the Borrower(s) remaining in the Property has adequate
financial resources to repay the Loan and pay the interest on it.
Provided that we have taken all reasonable steps to bring the event to your attention
as soon as possible after the occurrence of such event, before we declare that an
event of default has occurred.
5.2 If we declare that an event of default has occurred we may at (or at any time after) the
time of making the declaration:
(a)
(b)
(c)
(d)
(e)
cancel any undrawn amount of the Loan; and/or
demand immediate payment of the sums outstanding (in which case the sums
outstanding will become immediately due and payable by you) or declare that the
sums outstanding shall become due and payable on demand; and/or
charge to you any costs and expenses incurred by us in enforcing our rights under
this Offer or in protecting and enforcing our security;
charge interest on any arrears balance on the same basis and rate as that applicable
to the outstanding Loan amount, together with such charges as will apply and as
detailed in our Notification of Administration Fees and Charges leaflet.
You can mitigate payment of interest on arrears balances and applicable charges by
ensuring that you keep your repayments up to date and in accordance with your Loan
terms. If you have difficulty in meeting repayments you should contact us as there
may be options available such as changing the payment date to match your salary
date which may assist in the mitigation of additional interest and charges. Please
contact us to see if this would be possible or to explore other options.
6. Repayment Of The Loan
6.1 Interest Only Loans
(a)
THERE IS NO GUARANTEE THAT THE PROCEEDS OF THE INSURANCE POLICY
WILL BE SUFFICIENT TO REPAY THE LOAN IN FULL WHEN IT BECOMES DUE
FOR REPAYMENT.
Repayment of the Loan must be made by you, or on your behalf, at the end of the
Term of the Loan or earlier, upon receipt of the proceeds of the policy(ies) and/or any
other repayment method(s) which you have selected for this purpose, and/or from
other funds available at that time.

(b)
(c)
(d)
(e)
If the Loan is of an Endowment-linked or Pension Plan-linked nature, the proceeds
of such policies/plans must be used to repay the Loan at the end of the Term of the
Loan.
If the proceeds of the policy(ies) and/or any other selected repayment method(s)
are insufficient to repay the Loan at the end of the Term of the Loan, you will pay the
balance to us immediately or, at our discretion, by monthly payments of principal and
interest.
The Borrower may be required or advised by the Insurer or by the Lender during the
lifetime of the Loan to increase the amount of the premium payments on the policy
relating to the Loan in order to secure an increase in the proceeds of the policy on
maturity.
Early surrender of the policy may result in a return to you which is less than you have
paid in premiums and other charges.
7.12 You must not, without obtaining our prior written consent:
(a)
(b)
(c)
(d)
use or permit any part of the Property to be used for any purpose other than the
existing permitted use; or
carry out any alteration to or development of the Property; or
let, sublet, convey, assign, transfer, mortgage or otherwise dispose of the Property.
create a second charge over the Property.
7.13 If we agree to any letting or sub-letting of the Property, or any part of the Property, we
may vary the interest rate detailed in the Offer.
7.14 In the event that this Offer is addressed to, and accepted by, more than one person,
the obligations of each person shall be joint and several.
6.2 Annuity Loans
(a)
(b)
If the Loan is scheduled to be repaid on an Annuity/ Repayment basis, we will
calculate suitable monthly repayments designed to repay the Loan by the end of the
Term of the Loan.
These monthly repayments will, with your interest payments, be collected by direct
debit from your bank account.
6.3 On repayment of the Loan in full, you will pay to the Bank a reasonable fee in relation
to the preparation, processing and sealing of a Deed of Discharge/Release of the
Bank’s security. Registration of the Release/Discharge is a matter for you or your
solicitor.
7. General Conditions And Administrative Provisions
7.1 We can withdraw the Offer at any time before acceptance by you.
However, unless it is withdrawn, the Offer will be open for acceptance for one
calendar month from its date. If not accepted within that time the Offer lapses.
7.2 If any part of the Loan remains undrawn three months after the date of the Offer (or
if interest on the Loan is charged at a Fixed Rate, any other timescale notified to you)
then unless we agree to extend that period the undrawn amount shall automatically
be cancelled.
7.3 At time of drawdown, the Loan funds will be remitted to your solicitor by Interbank
Electronic Transfer, who must notify the Bank at the earliest opportunity of the
drawdown date.
7.4 A statement of the Loan at any time and/or interest and/or charges due to us at any
time, as certified by a Bank authorized official, shall (except where we have made an
obvious error) be final and conclusive.
7.5 No delay by us in exercising any right, power or privilege under the Offer shall prevent
us from exercising it at a later date and we can exercise any of our powers on more
than one occasion.
7.6 Unless we agree in the Offer, the Offer will be governed by the law of the country in
which the Property is situated and the courts of that country will have jurisdiction in
relation to any matter relating to the Offer.
7.7 Any notice from us shall be effectively given if sent by post to your address last
known to us or to the Property. Any notice shall be deemed to have been given and
received forty eight hours after being sent by prepaid ordinary post.
7.8 You are responsible for all your solicitor’s (and where applicable your spouse’s
solicitor where your spouse is to be independently advised) costs including VAT
outlays, stamp duty and registration fees payable in connection with the acquisition (if
any) of the Property and the protection of the Bank’s security in accordance with your
solicitor’s undertaking.
7.9 You shall reimburse us for all legal fees and expenses relating to the Offer and any
security that may be required.
7.10 You must keep the Property insured to its full reinstatement value with a reputable
insurance company for all the normal risks included in a comprehensive domestic
buildings insurance policy, failing which we may do so and recover payment of any
premiums from you and may debit the premium(s) to the Loan account. The amount
and scope of cover required by us to protect our interests may be less than you
require to protect your own interests. By accepting these terms you acknowledge this
and accept that it is your own responsibility to arrange any additional insurance which
may be required.
7.11 In the event that the Property is less than ten years old, a valid National Housing
Building Guarantee Scheme HB47 Certificate must be in force. As an alternative,
and entirely at the Bank’s discretion, a set of Architects Certificates, acceptable to
the Bank, must be in place.
7.15 While any part of the Loan is outstanding you must commence and keep in force
any life insurance policy or personal pension plan or any other fund intended for
repayment of the Loan and the premium or regular payments due under the policy,
plan or fund must be made at the amount (up to any statutory or other applicable
limit to contributions or premiums or any relevant restrictions in the policy or plan)
necessary to maintain its projected value. Failure to pay the premium or regular
payments under the Policy shall be an event of default as detailed in 5.1 above.
(Failing which we may do so and recover payment of any premiums from you and
may debit the premiums to the Loan Account).
7.16 In the event that the end of the Term of Loan is earlier than the date of maturity of any
pension policy intended for repayment of the Loan then we may, at our discretion,
extend the redemption date to coincide with the date of maturity of the pension policy.
7.17 A note of all the charges relating to your mortgage will accompany your Offer Letter.
If during the year the charges change, then an amended tariff will be sent to you.
8. Securitisation
8.1 By accepting this Offer, you hereby irrevocably and unconditionally consent to
the Bank at any time or times hereafter transferring, assigning, disposing whether
absolutely, by way of security or otherwise, mortgaging or charging or transferring
as part of a securitisation scheme or otherwise, the Mortgage and/or the benefit of
the Mortgage and/or any collateral or ancillary security (including, without limitation,
any insurance policy or policies of life or endowment assurance) and the monies
hereby secured (collectively "Transfers" and any one a "Transfer") to any third party
or body including, without prejudice to the generality of the foregoing, any subsidiary
or associated company of the Bank and to any trustee(s) or administrator(s) under
any trust or administrative arrangement or securitisation scheme entered into by
the Bank (an "Arrangement") on such terms as the Bank may think fit and to any
consequential assurance, reassurance, release of, or enforcement of security under,
a Transfer and/or Arrangement without any further consent from, or notice to, you
or any other person whereupon all powers and discretions of the Bank (including,
without prejudice to the generality of the foregoing, the right to determine or vary the
current rate of interest from time to time payable or deemed to be payable by the
Mortgagor on the monies hereby secured) shall be exercisable by the transferee or
other beneficiary of a Transfer and/or Arrangement and the Bank may include the
Mortgage and/or the benefit of the Mortgage and/or any collateral or ancillary security
as aforesaid and the monies hereby secured as aforesaid in any Arrangement without
any further consent from, or notice to, you.
8.2 You also hereby irrevocably and unconditionally authorise the Bank, for the purposes
of, or in connection with, a Transfer and/or Arrangement, to disclose to the proposed
transferee, assignee, mortgagee, trustee or other beneficiary of a Transfer and/or
Arrangement, or to any person proposing to participate in, or promote or underwrite
or manage any Transfer or any Arrangement and to every person to whom the Bank
is obliged thereunder to make such disclosure details of the Mortgage including,
without prejudice the generality of the foregoing, details of the amount hereby
secured and such other information and documentation in the Bank’s possession
in relation to the Mortgage, you, the monies hereby secured and any ancillary or
collateral security aforesaid, as may be required by any such person in connection
with any Transfer and/or Arrangement and this authority shall constitute a consent
to the disclosure of all confidential information in the possession of the Bank in
connection with any Transfer and/or Arrangement and in so far as such information
constitutes personal data within the meaning of the Data Protection Act 1998 (as
may be amended from time to time) this authority shall constitute a consent for the
purposes of the Data Protection Act 1998 (as may be amended from time to time)
to the disclosure of personal data.
9. Each of the provisions of this Offer is severable and distinct from the others and
if at any time one or more of such provisions is or becomes illegal, invalid or
unenforceable, the validity, legality and enforceability of the remaining provisions
hereof shall not in any way be affected or impaired thereby.
10. WARNING: YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS
ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT.
11. WARNING: THE PAYMENT RATES ON THIS HOUSING LOAN MAY BE
ADJUSTED BY THE LENDER FROM TIME TO TIME. - THIS DOES NOT
APPLY DURING A FIXED RATE PERIOD.

Bank of Scotland plc,
PO Box 1717,
Kirkton Campus,
1 Baird Road,
Livingston,
Scotland EH54 7AZ
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