Equity Release

You can apply for our Lifetime Mortgage if:

• You are aged 60 or over
• There are a maximum of two borrowers
• You own your home in full or have a small mortgage outstanding.

To apply for our Lifetime Mortgage your property must:

• Be mortgage free or have a small mortgage outstanding — in this case part of the Lifetime Mortgage must be used to repay this debt
• Be in good repair
• Have at least 80 years remaining on a lease
• Be in joint names on the property title — if there are two borrowers.

The term of the Lifetime Mortgage will be:

• The lifetime of the single or surviving borrower, or
• Until the surviving borrower moves into long term care, or
• Until the property is sold when the borrower moves house.

But you may be in a position to pay off part or all of your mortgage earlier — should you come into some money or a policy matures.

No you don’t — you can borrow what you need to start, then apply for further advances at a later date with no additional fees.

In fact, it may work out cheaper to release equity over a period of time. But there is a minimum withdrawal of £5,000 for each advance after the initial lump sum.

If, at a later date, you want to borrow an amount of money that depends on your property having increased further in value we can look at that too. You will have to pay the cost of a new valuation and interest will be charged at whatever fixed rate applies at that time.

You decide how you want to repay the money you have released.

You can repay the loan in full — with all the interest added — when your house is eventually sold. If you have taken out the mortgage in joint names it will not be repaid until the last borrower dies or moves permanently into long term care.

You can also make regular monthly payments to cover the cost of the interest. And the loan will still be repaid from the eventual sale of your home.

And if you come into some money or a policy matures, you may be in a position to pay off part or all of the mortgage in a lump sum.

Yes, and it’s fixed for the life of the mortgage. See Interest rates for our current competitive rate.

If you pay off your mortgage within the first ten years you will be charged for early repayment — 5% of the original loan amount.

If the loan is repaid on death or when you move permanently into long term care, no early repayment charges will apply.

Scottish Widows Bank guarantees that:

• We will not — under any circumstances — ask you to pay back more than the open market sale proceeds of your home when the loan is repaid.
• You will still be able to live in your home for as long as you want to or until you move into permanent long term care.
• We will never repossess your home — even if the total debt is more than its value.

A full summary of our guarantees can by found here.

It is important that you seek professional advice — from a qualified source independent of Scottish Widows Bank — and discuss your options with family members before taking on a Lifetime Mortgage. It may also be a good idea to review your Will with your solicitor.

If you have any doubts about the suitability of this mortgage, you should consult your independent financial adviser. You should also check if it will affect any state benefits you receive, and how taking out a Lifetime Mortgage might affect your tax position.

If you take out a Lifetime Mortgage there will be a non-refundable, fixed rate booking fee of £495.

We have negotiated a very competitive fee structure with our surveyors — detailed in the table below.

Yes, you can view your Lifetime Mortgage using our Internet Banking service. Internet Banking allows you to:

• Check your mortgage balance.
• View details of recent transactions.

And it’s easy to register too — just complete the ‘Internet Banking’ question in your Lifetime Mortgage application form. Alternatively, please call 0845 757 3444 to register for this service. Our opening hours are 8am to 6pm Monday to Friday (Wednesday from 10am). When you call, you’ll need your Lifetime Mortgage account number. We’ll also ask you additional questions to verify your identity before setting up your access.

Scottish Widows Bank’s charges are competitive and in line with the industry standards. They are detailed in the Mortgage Rates Sheet and the Key Facts Illustration you will receive before you submit your mortgage application.

You can download a PDF of our Tariff of Charges (pdf 84k). And if you need further help please call us on 0845 845 0829 (calls charged at local rates).