Mortgage Reserve Account

If you didn't open a Mortgage Reserve Account when you took out your mortgage with Scottish Widows Bank, you may be able to open one now if it's more than six months since your mortgage completed. It can have a limit of up to £50,000, as long as the total amount of the Mortgage Reserve Account and your mortgage is within the maximum amount we would lend you.

For example, if we were willing to lend you up to £100,000 but you only had a main mortgage for £80,000, you could apply for a Mortgage Reserve Account with a limit of up to £20,000.

There are no set up costs and borrowing is at our standard variable rate. You can withdraw and deposit funds as and when you wish. Even if you don’t need all the money at once, with a Mortgage Reserve Account you can take what you need, when you need it. And, if you ever need to take a payment holiday a Mortgage Reserve Account must be in place.

• Minimum limit facility £5,000, maximum normally £50,000.
• Subject to overall loan to value of 85% for a Flexible Mortgage, and 90% loan to value for a Professional Mortgage.
• Minimum term 5 years, maximum equal to existing mortgage term.
• Must be repaid in full over the term of the main mortgage.
• You don't need to make any repayments until the Mortgage Reserve Account limit is reached. However, you should be aware that interest will continue to be charged on the outstanding balance on a monthly basis at our Standard Variable Rate.
• Your monthly mortgage payment does not cover borrowing on your Mortgage Reserve Account.
• This will increase the borrowing secured on your home.
• Funds are transferred to/from your nominated account. Internet Banking is available.
• The minimum value of deposits and withdrawals is £100
• You can set up regular payments at any time.
• No interest is earned on a balance in credit.

To find out more or to apply, please call us on 0845 845 0829 – Monday to Friday 8am – 6pm, (Wednesdays from 10am).