Existing customers
Mortgages
Product transfers
If your client already has a mortgage with Scottish Widows Bank, you can apply online to switch them to a new deal.
- Key up to four months before the expiry of an existing product.
- You can choose to start the new product up to three months before the end of the existing product, or from the first of the month following the product expiry.
- Simple online application process.
- No ERCs if there’s less than four 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. NB - to start from the first of the next month the last day to apply would be the 7th working day before the month end.
If there’s a product fee to be paid up front, this must be paid before the offer can be produced.
Please see the below Contract changes section where a term or repayment change is also required.
Interest only – Repayment Vehicles need to be verified
- Where any element of existing borrowing is on interest only, or where some or all of the loan amount is being changed from capital and interest to interest only, we’re required to check the customer has sufficient repayment vehicles in place to repay the whole interest only balance at the end of the term.
- This applies even if the Product Transfer/Contract Change does not affect the interest only element of the mortgage.
- Acceptable Repayment Vehicles are the same as for new business, but we can also accept cash savings (including offset savings).
- Please see our criteria page for Acceptable repayment plans
- If the Repayment Vehicle is sale of a second property we’ll need full property details to enable us to instruct a desktop valuation. There is no charge to the customer for this. This normally takes 24 to 48 hours. Occasionally we’re unable to do a desktop valuation and we arrange for an external appraisal, which can delay the process considerably. We’ll also look at the Land Registry to check ownership and must see a recent mortgage statement for the property (unless unencumbered). Please complete Interest Only – Other Residential Property Form (PDF, 600KB)
Important: When submitting any application you must select your Network/Club when prompted. Your Firm name may be pre-populated; many Brokers see their Firm name and continue to the next screen without selecting their Network/Club. This causes system errors and subsequent delays if we have to contact you.
Borrow more
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
- Mortgage Reserve Accounts (MRAs) must be closed or fully utilised before any additional borrowing is allowed
- we won’t consider applications for additional borrowing for: business reasons ; replenishing savings (even if savings have been used for an acceptable reason e.g. a new kitchen); depositing in an Offset Saver Account.
*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. The revaluation is for lender purposes only and may be completed using an automated valuation (AVM) or remote valuation.
Interest rates & charges
- Interest charged at our Standard Variable Rate.
- £199 arrangement fee.
- You can switch the additional borrowing to a new rate once drawn down by applying for a Product Transfer.
- The first payment amount due for the Further Advance is set at draw down and cannot be affected by any rate switch. The monthly payment for the rate switch will otherwise apply from the month following receipt of the Product Transfer offer. If the Product Transfer offer is received the same month as the Further Advance was drawn down, the first payment reflecting the rate switch will commence the month following that. E.g. Further Advance drawn down 13th Oct, takes effect 1st Nov, the first payment will be due 1st Dec. If a Product Transfer is completed and the offer returned before 1st Nov the new interest will be applied from 1st Nov but as the first payment for the Further Advance is already set for 1st Dec the new payment following the rate switch will change the payment from 1st Jan, with any interest adjustment applied to this payment.
- Fees can be paid up front or rolled up with the additional borrowing.
- If the term of the additional borrowing is to be aligned with the main mortgage please ensure you select this option on the application form (instead of stating years and months). If you state years and months this could result in a small difference in term between the additional borrowing and main mortgage, preventing the two elements being rolled up into a single rate with the same end date. This would also limit the potential amount to offset against; whereas if the additional borrowing is rolled up with the main mortgage your client could offset against the combined amount.
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.
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If you need to add or remove someone from the title deeds you can apply for a Transfer of Equity.
To apply for a Transfer of Equity call our Intermediary Support Team on 0345 845 0110. Lines are open 8am to 6pm Monday to Friday.
Upon completion the existing mortgage will be redeemed and closed, and a new mortgage (including Offset if applicable) will be opened.
The applicant(s) will need to appoint a solicitor who is on the Lloyds Banking Group panel to remove the charge at the Land Registry and register a new charge with the amended name(s). Applicant(s) are responsible for paying associated legal fees.
We require the charge at the Land Registry to be removed and a new charge registered with the amended name(s) – this will result in a legal fee which the applicant(s) are responsible for paying.
The application may include a Further Advance, for example if funds are required to buy out the other party.
The existing borrowing amount on the current rate can be ported to the new mortgage. Any further borrowing will be on Product Transfer rates. If the current borrowing is on our Standard Variable Rate, we can also process a Product Transfer for this amount at the same time.
Properties must be registered with the land registry in the owner's name(s) for at least 6 months before any new lending can be considered. An exception to this rule is an inherited property where the applicant is a beneficiary.
No procuration fee is paid unless there is a Further Advance and/or Product Transfer on the existing borrowing.
The Halifax Index is used for the valuation:
- If the total loan (mortgage plus any 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, 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.
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If a customer is moving house they can apply to port their existing loan and keep the current rate. If any further borrowing is required it would be on new business rates.
To make a Porting application call our Intermediary Support Team on 0345 845 0110. Lines are open 8am to 6pm Monday to Friday.
We’ll produce the Mortgage Illustration which you can then access using our Online Mortgage Service and proceed to full application. The application would then be processed as a new business application.
The purchase of the new property and redemption of the existing property need to be completed simultaneously otherwise Early Repayment Charges may apply.
If the customer sells their property, but they’re not ready to buy another, they’ll need to repay their existing mortgage. This means they’ll have to pay any early repayment charges that apply.
However, if they submit a new mortgage application with us within 90 days of repaying the existing mortgage, they can apply for a refund of the early repayment charge once the new mortgage has started. In this scenario they would need to select a new rate from our current range, and if the new loan is for a reduced amount, the early repayment charge refund will be pro-rata. This concession may not always be available.
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If you want to change the term or the repayment type of the existing mortgage you can apply for Contract Changes.
To apply for any Contract Changes call our Intermediary Support Team on 0345 845 0110. Lines are open 8am to 6pm Monday to Friday.
If you were not the original introducer, you’ll require your client’s authority to act on their behalf and obtain information about the account. Please email a signed letter of authority addressed to SWB, confirming the customer’s name and mortgage account number and the adviser’s name and company to swb.mortgages@scottishwidows.co.uk We’ll then note your authority on the account and provide information as required.
We'll produce the mortgage illustration and key the application for you over the phone.
The application is subject to full underwriting with income verification; and where the change is to Interest Only we’ll need to see evidence of an acceptable repayment plan.
Changes to term or repayment type – evidence of income needed
There are three scenarios where we require documentary evidence of your client’s income:
- Term Reduction (capital and interest borrowing)
- Term Extension (capital and interest borrowing) where the new term extends into retirement (or where the existing term already extends into retirement) unless your client is already retired.
- Any change to the repayment type
If your client is:
- self-employed we require their latest two years’ tax calculations and corresponding tax year overviews.
- employed we require their latest payslip.
- retired we require either their latest payslip or their most recent annual pension statement.
Interest only – Repayment Vehicles need to be verified
- Where any element of existing borrowing is on interest only, or where some or all of the loan amount is being changed from capital and interest to interest only, we’re required to check the customer has sufficient repayment vehicles in place to repay the whole interest only balance at the end of the term.
- This applies even if the Product Transfer/Contract Change does not affect the interest only element of the mortgage.
- Acceptable Repayment Vehicles are the same as for new business, but we can also accept cash savings (including offset savings).
- If the Repayment Vehicle is sale of a second property we’ll need full property details to enable us to instruct a desktop valuation. There is no charge to the customer for this. This normally takes 24 to 48 hours. Occasionally we’re unable to do a desktop valuation and we arrange for an external appraisal, which can delay the process considerably. We’ll also look at the Land Registry to check ownership and must see a recent mortgage statement for the property (unless unencumbered).
No procuration fee is paid unless there's a Product Transfer on the existing borrowing, for which we would pay our standard amount.
If there’s a product fee to be paid up front, this must be paid before the offer can be produced. There are no fees for Contract Changes.
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.