Question 1

How is buying a home in Scotland different from England?

Accepted Answer

Scotland uses its own legal process. Most sales go through solicitors, offers are usually made via a "Note of Interest" and a closing date, and the purchase tax is Land and Buildings Transaction Tax (LBTT) rather than Stamp Duty. Properties are often marketed as "offers over" a Home Report valuation.

Question 2

What is a Home Report?

Accepted Answer

A Home Report is a pack the seller must provide for most residential properties in Scotland. It contains a single survey and valuation, an energy performance certificate, and a property questionnaire. Lenders often rely on the Home Report valuation when deciding how much to lend.

Question 3

What does "offers over" mean?

Accepted Answer

"Offers over" signals the seller expects bids above the stated figure, which is usually the Home Report valuation. In competitive areas the agreed price can sit well above the asking figure, so buyers should budget for the gap between valuation and final price.

Question 4

What is LBTT?

Accepted Answer

Land and Buildings Transaction Tax (LBTT) is the tax paid when you buy a property or land in Scotland over a certain price. It is administered by Revenue Scotland and is charged in progressive bands, so you only pay each rate on the portion of the price within that band.

Question 5

Is there first-time buyer relief in Scotland?

Accepted Answer

Yes. First-time buyers can claim relief that raises the point at which LBTT starts to apply, reducing the tax due on many typical purchases. The relief applies to the buyer's only or main residence.

Question 6

What is the Additional Dwelling Supplement (ADS)?

Accepted Answer

ADS is an extra LBTT charge that applies when you buy an additional residential property, such as a second home or a buy-to-let, while keeping another. It is charged on top of standard LBTT on the full purchase price. Use Annah's LBTT calculator to estimate both figures.

Question 7

How much can I borrow?

Accepted Answer

Lenders typically lend around four to four-and-a-half times annual income, adjusted for outgoings, credit commitments and the deposit. Affordability also depends on the interest rate and term. Annah's affordability calculator gives an indicative range so you can sense-check budgets early.

Question 8

How big a deposit do I need?

Accepted Answer

Most residential mortgages need at least 5% to 10% of the purchase price as a deposit, with better rates usually available from 15% to 25%. Remember that in Scotland you may also need to fund the gap between the Home Report valuation and an "offers over" sale price.

Question 9

What is loan-to-value (LTV)?

Accepted Answer

Loan-to-value is the size of your mortgage expressed as a percentage of the property value. A £180,000 mortgage on a £200,000 home is 90% LTV. Lower LTVs generally unlock lower interest rates because they are lower risk for the lender.

Question 10

Should I overpay my mortgage?

Accepted Answer

Overpaying reduces the balance you pay interest on, which can shorten the term and cut total interest significantly. Many deals allow overpayments of up to 10% of the balance per year without penalty. Check your deal's limits and any early repayment charges first.

Question 11

Is Annah regulated financial advice?

Accepted Answer

No. Annah provides general information and indicative calculations to help you understand the Scottish mortgage process. It does not recommend specific products or lenders and is not a substitute for advice from a qualified, regulated mortgage adviser.

Question 12

Does Annah cost anything?

Accepted Answer

Annah's chat assistant and calculators are free to use. You can ask questions and run estimates without creating an account.

Scotland mortgage questions, answered

Buying a home in Scotland

LBTT (the Scottish purchase tax)

Mortgages and affordability

About Annah

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