Homes for Ukraine
If your client is planning to support the government scheme to house Ukrainian refugees we are supporting them by making the process as simple as possible.
Your client will not be required to notify us if they are providing:
- A room(s) in their own their home (current limit of 2 lodgers will not apply)
- A residential property they own (no need to request consent to lease but they will need to obtain a tenancy agreement)
It is important they consider whether by providing this support they are still able to afford their own household bills, pay their mortgage and it doesn’t put them in financial difficulty. They may wish to look at any government guidance issued.
Your client should also check with their building/content insurance provider to see if they need their consent.
If your client already has a mortgage with Scottish Widows Bank, you can apply online to switch them to a new deal.
- Simple online application process.
- No ERCs if there’s less than three months to go on their existing rate.
- No ERCs on SVR.
- No valuation required.
Your client must have an existing Flexible or Professional Scottish Widows Bank mortgage to use this service.
The online service is not available for the following:
- borrowing above £1 million
- guarantor mortgages
- mortgages with consent to let
- mortgages where the existing term extends beyond the client's anticipated retirement age or their state pension age, whichever is lower
- mortgages with any interest only lending, where the client does not have an acceptable repayment vehicle to cover the interest only amount.
The rate switch will take effect on the date chosen which can be either the first of the next month (or month after if less than 6 working days until month end), or the first of the month following expiry of the existing rate.
If your client needs additional borrowing you can apply for a Further Advance on their existing Scottish Widows Bank mortgage.
Additional borrowing is subject to the following criteria:
- minimum advance £5,000
- minimum property value is £40,000
- maximum advance up to 85% LTV, based on current valuation*
- minimum term two years
- maximum term 40 years, or to age 80 if less
- existing customers can apply for a Further Advance once six months have elapsed after completion of the main mortgage.
*Further Advances above 80% of indexed valuation:
- For further advance applications (including combined product transfer/further advance applications), if the total loan (mortgage plus further advance) exceeds more than 80% (subject to standard lending limits) of the indexed valuation a revaluation is required for the case to proceed.
- If your client wishes to proceed and feels that the property value is higher and sufficient that the total lending will be within the maximum 85% limit, they may provide an estimated property value. A revaluation will be required to support the estimated property value being used.
- A revaluation fee of £100 will be charged and must be paid in advance by the client before a valuer can be instructed.
Interest rates & charges
- Interest charged at our Standard Variable Rate, currently 3.59%.
- £199 arrangement fee.
- You can switch the additional borrowing to a new rate once drawn down by applying for a Product Transfer.
Fees can be paid up front or rolled up with the additional borrowing.
Interest only borrowing
If your client is applying for an interest only Further Advance, or has any of their existing debt on interest only, we’ll also need to see evidence of the repayment plan your client intends to use to repay the amount at the end of the term. Check our criteria page
Other changes for our existing mortgage customers
You can make these changes on their own, or all at once, together with Additional Borrowing and Product Transfers.