What does Regional Lenders mean?

Regional lenders are those who lend on a “geographical restriction” basis, meaning they will hardly offer mortgages outside their region off activity. This is usually true for smaller lending companies, for which lending outside their area of operation would mean high risk transactions for them.

Consequently, if you wish to take up mortgage in Scotland, you will have to find a suitable lender in that area. Besides, in Scotland there is different house price inflation, staying more affordable then in other parts of the UK. Certainly this will trigger different terms and conditions set by the lender, a lower needed loan, things which a London based lender is not able to offer because perhaps it is advantageous to him.

While on average a house price in Scotland verges somewhere on £160,000, UK house price exceed well over £200,000. As you can see, there are quite some differences and that is why regional lenders set themselves some limits regarding mortgage lending areas.