Lifetime Mortgage
Designed to enable customers to unlock equity in their homes for a variety of needs
Key details
- Our lifetime mortgage has been designed to help customers unlock a lump sum with optional future releases from their homes with clear rates, charges, optional payments and a range of safeguards.
- The mortgage will accrue interest at a fixed rate until the loan is repaid, for example, when the customer enters long term care, sheltered accommodation or dies. There is no affordability assessment and monthly mortgage payments do not apply.
- Intermediaries must be a member of the Equity Release Council to join our Later Life panel and offer this product. If you are an AR of one of the networks listed below, you do not need individual membership:
- Quilter
- Home Loan Partnership
- Primis
- Stonebridge
- Mortgage Intelligence
- Tenet
Key Benefits
- No Negative Equity Guarantee (NNEG)
- A percentage of the property value can be protected for inheritance or care
- Future release functionality available for seven years
- Portable with no early repayment charges
- Interest rate fixed for the life of the mortgage
- No monthly interest payments during the customer's lifetime
For more information please see our Lifetime Mortgage Lending Guide (PDF)
Lifetime interest rates
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Our Lifetime products are only available for releasing equity where the client already owns the property and uses it as their main residence.
We do not offer Lifetime mortgages for the purpose of purchasing property.- Minimum age – 55 years
- Maximum age – 85 years
- For joint applications, the minimum age applies to the youngest applicant, the maximum age applies to the oldest applicant
- Maximum number of applicants – two
- Minimum facility – £30,000
- Maximum facility – £600,000
Acceptable loan purposes:
- Paying off the existing mortgage
- Consolidating debts e.g. loans and credit cards
- Helping friends and family
- Property modifications
- Lifestyle e.g. holiday or new car
The following Loan to Value (LTV) lending limits apply:
Max LTV bandings apply to both the Lump Sum and Future Release
AGE
(Youngest Applicant)LS1/FR1
LS2/FR2
LS3/FR3
LS4/FR4
LS5/FR5
LS6/FR6
LS7
LS8
LS9
55 11.80% 15.00% 20.10% 22.10% 22.80% 23.50% 24.30% 25.00% 25.50% 56 12.90% 16.10% 21.20% 23.20% 23.90% 24.60% 25.40% 26.10% 26.60% 57 14.00% 17.20% 22.20% 24.30% 25.00% 25.70% 26.50% 27.20% 27.70% 58 15.10% 18.20% 23.30% 25.30% 26.05% 26.80% 27.60% 28.30% 28.80% 59 16.20% 19.30% 24.30% 26.40% 27.15% 27.90% 28.70% 29.40% 29.90% 60 17.30% 20.40% 25.40% 27.50% 28.55% 29.00% 29.80% 30.50% 31.00% 61 18.40% 21.50% 26.50% 28.60% 29.55% 30.10% 30.90% 31.60% 32.10% 62 19.50% 22.60% 27.50% 29.70% 30.55% 31.20% 32.00% 32.70% 33.20% 63 20.50% 23.60% 28.60% 30.70% 31.50% 32.30% 33.10% 33.80% 34.30% 64 21.60% 24.70% 29.60% 31.80% 32.60% 33.40% 34.20% 34.90% 35.40% 65 22.70% 25.80% 30.70% 32.90% 33.70% 34.50% 35.30% 36.00% 36.50% 66 23.80% 26.90% 31.70% 33.90% 34.75% 35.60% 36.40% 37.10% 37.60% 67 24.90% 28.00% 32.70% 34.90% 35.80% 36.70% 37.50% 38.20% 38.70% 68 25.90% 29.00% 33.70% 36.00% 36.90% 37.80% 38.60% 39.30% 39.80% 69 27.00% 30.10% 34.70% 37.00% 37.95% 38.90% 39.70% 40.40% 40.90% 70 28.10% 31.20% 35.70% 38.00% 39.00% 40.00% 40.80% 41.50% 42.00% 71 29.00% 32.20% 36.70% 39.00% 40.05% 41.10% 41.90% 42.60% 43.10% 72 29.90% 33.10% 37.70% 39.90% 41.05% 42.20% 43.00% 43.70% 44.20% 73 30.80% 34.10% 38.70% 40.90% 42.30% 43.30% 44.10% 44.80% 45.30% 74 31.70% 35.00% 39.70% 41.80% 43.40% 44.40% 45.20% 45.90% 46.40% 75 32.60% 36.00% 40.70% 42.80% 44.35% 45.50% 46.30% 47.00% 47.50% 76 33.40% 37.00% 41.70% 43.80% 45.50% 46.50% 47.30% 48.00% 48.50% 77 34.30% 38.00% 42.70% 44.70% 46.50% 47.50% 48.30% 49.00% 49.50% 78 35.10% 38.90% 43.70% 45.70% 47.50% 48.50% 49.30% 50.00% 50.50% 79 36.00% 39.90% 44.70% 46.60% 48.25% 49.50% 50.30% 51.00% 51.50% 80 36.80% 40.90% 45.70% 47.60% 49.25% 50.50% 51.30% 52.00% 52.50% 81 37.60% 41.70% 46.50% 48.30% 49.75% 51.00% 51.80% 52.50% 53.00% 82 38.40% 42.50% 47.30% 49.00% 50.25% 51.50% 52.30% 53.00% 53.50% 83 39.20% 43.30% 48.10% 49.70% 50.85% 52.00% 52.80% 53.50% 54.00% 84 40.00% 44.10% 48.90% 50.40% 51.45% 52.50% 53.30% 54.00% 54.50% 85 40.80% 44.90% 49.70% 51.10% 52.05% 53.00% 53.80% 54.50% 55.00%
The rate of interest payable varies across the LTV groups. -
MINIMUM / MAXIMUM PROPERTY VALUE
Minimum property value – £100,000 (£150,000 on ex-Local Authority, ex-Ministry of Defence and ex-Housing Association properties)
No maximum property value
The property must be the applicant’s main residence. For joint applications, it must the main residence for both parties.
Joint applicants can be joint tenants or tenants in common.
The property must be located in the UK, excluding Northern Ireland, Channel Islands and Isle of Man.
The property must contain no more than five bedrooms regardless of whether any have been repurposed e.g. used as an office but originally designed as a bedroom.
Any additional occupants living in the property not named on the mortgage must sign a consent to mortgage form in all cases. This includes any adult children.
The property must be either:
- Unencumbered, or;
- If an existing mortgage is in place, or if any other lending is secured against the property, this must be paid off using the proceeds of the new Lifetime mortgage
EXAMPLES OF UNACCEPTABLE PROPERTY TYPESProperty types which are not acceptable include:
- Age restricted property e.g. retirement villages and sheltered housing
- Property with more than two lodgers or tenants
- Property subject to a trust
- Property currently undergoing substantial alterations, extensions or repairs
- Property with a value less than £100,000
- Ex-Local Housing Authority and Ministry of Defence property with a value less than £150,000
- Property with a second charge e.g. right to buy, within pre-emption period, shared equity, shared Ownership, not acceptable if the applicant does not intend to pay off the second charge using the Lifetime mortgage
- Property that is not the applicant's main residence. Includes entirely tenanted properties
- Flats, caravans, crofted houses, park homes and maisonettes and log cabins
- Leasehold and commonhold
- Property intended for commercial purposes
- Properties with swimming pools
- Steel framed or steel clad property built before 2000
- Large panel system (LPS) e.g. Bison, Bryant wall-frame
- Pre-cast reinforced concrete e.g. Tarran pre-fabricated, Cornish unit, Cubbitt steel framed
- Poured concrete e.g. Laing's Easiform or Wimpey no-fines
- System built concrete
- Cross wall construction
- Vernacular construction materials e.g. Mundic concrete block or Norfolk clay lump
- 100% timber construction e.g. Colt or Swedish timber
- Timber framed property built between 1850 and 1965
- Timber framed property with light weight cement render finish
- Temporary style timber properties e.g. Canadian cedar wood, Norwegian log/timber frame, Colt or Swedish
- Property subject to MMC guidelines e.g. Modular or SIPS
- 100% flat roof
- Construction of Roof is Thatch or Thatched roofing
- Property with asbestos roof coverings or similar composition roof tiles
- New build or converted in last 10 years and has no warranty in place
- Annex comprising of 50% of property
- Annex occupied by non-family member
- Annex having separate council tax band
- Listed as Grade I/II*in E&W or Grade A/B in Scotland
- Property deemed unacceptable by a valuer due to major restrictions to saleability or significant structural problems
- Property having habitable space within 75m of pylons, over-head power cables or mobile phone masts
- Property with spray foam insulation applied to the underside of the roof
- Property with single skin brickwork where the single skin (primarily 4 ½” brick) comprises more than approximately 20% of the surface area of the external walls
- Property with solar farms and wind turbines which are not primarily for the use of the property itself (i.e. must not be commercial in nature)
- Property incorporating generation/distribution apparatus e.g. substations, masts and gas pipelines which are deemed commercial in nature
- Property, including any outbuildings or garden land, that has flooded in the last five years or are threatened by coastal erosion. Properties will be assessed for flood risk at quote stage. If a property is assessed as being in a high-risk zone, it will be unacceptable
- Property where underpinnings have taken place within the last three years
- Property with over 20 acres of land (can refer for approval subject to no agricultural restrictions)
- Property which has Japanese knotweed or other notifiable invasive plants are present
- Where a property has more than three acres of land, the valuation will only give credit to the first three acres. Any remaining land must not have any commercial / agricultural use
- Property built on contaminated land
- Property which has a service charge which exceeds 1.5% of property value
- Property which has a resale fee which exceeds 3% of property value
- Property served only by private water supply with no mains water supply
- Property to be subject to partial Title split of family dwelling
- Property that is accessed via a long driveway that has not been maintained properly
- Property that is accessed via a private road that has not been maintained properly
- Property that is subject to chancel liabilities or manorial rights entries
- Property that may be impacted by major infrastructure projects
- Property that has a private septic tank.
Construction types which are not acceptable include:
The following property circumstances would also be unacceptable:
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Interest rates effective from Friday 23rd July 2021.We reserve the right to change our product rates at any time.
All Lifetime products feature:
- Free conveyancing
- A free property valuation
- £600 cashback toward independent legal fees
Our Lifetime products are available for remortgage applications only.
Code Customer Type Rate Min Loan Max Loan LS1 (Remortgage)
Lump Sum Only
Fixed 2.69% £30,000 £600,000 LS2 (Remortgage)
Lump Sum Only
Fixed 2.75% £30,000 £600,000 LS3 (Remortgage)
Lump Sum Only
Fixed 2.87% £30,000 £600,000 LS4 (Remortgage)
Lump Sum Only
Fixed 3.07% £30,000 £600,000 LS5 (Remortgage)
Lump Sum Only
Fixed 3.21% £30,000 £600,000 LS6 (Remortgage)
Lump Sum Only
Fixed 3.46% £30,000 £600,000 LS7 (Remortgage)
Lump Sum Only
Fixed 3.68% £30,000 £600,000 LS8 (Remortgage)
Lump Sum Only
Fixed 3.96% £30,000 £600,000 LS9 (Remortgage)
Lump Sum Only
Fixed 4.28% £30,000 £600,000 Please see ‘Early Repayment Charges’ tab for details of ERCs that apply.
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Interest rates effective from Friday 23rd July 2021.We reserve the right to change our product rates at any time.
Code Customer Type Rate Min Loan Max Loan FR1 (Existing Customer)
Future Release Only
Fixed 2.69% £30,000 £600,000 FR2 (Existing Customer)
Future Release Only
Fixed 2.75% £30,000 £600,000 FR3 (Existing Customer)
Future Release Only
Fixed 2.87% £30,000 £600,000 FR4 (Existing Customer)
Future Release Only
Fixed 3.07% £30,000 £600,000 FR5 (Existing Customer)
Future Release Only
Fixed 3.21% £30,000 £600,000 FR6 (Existing Customer)
Future Release Only
Fixed 3.46% £30,000 £600,000 At the time of a future release we will re-assess the borrower’s LTV position. This will be calculated taking into consideration:
- The existing mortgage balance
- The new borrowing amount
- Our assessment of the property value
Please see ‘Early Repayment Charges’ tab for details of ERCs that apply.
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ERCs are only applicable to the original capital balance, not accrued interest. After the mortgage term has been running for ten years an ERC will no longer apply. A new ten year ERC period will apply to each future release.Please see the table below for details:
ERC Year ERC Rate Start Month End Month 1 10% 1 12 2 9% 13 24 3 8% 25 36 4 7% 37 48 5 6% 49 60 6 5% 61 72 7 4% 73 84 8 3% 85 96 9 2% 97 108 10 1% 109 120 11+ N/A
121 N/A In some circumstances, e.g. when porting, or where a borrower has moved into long term care, ERCs will not apply. Please refer to the Mortgage Illustration for details of any ERCs that apply.
important documents
Frequently asked questions
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Our fixed rate lifetime mortgage is available up to 55% LTV, on a minimum £30,000 and a maximum £600,000 loan. Applicants must be between 55 and 85 years.
For joint applications, the minimum age applies to the youngest applicant, the maximum age applies to the oldest applicant.
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- A No Negative Equity Guarantee (NNEG)
- The ability to ring-fence a percentage of the property value to guarantee to beneficiaries
- The right to remain in the property for life or until the owner needs to move in to long-term care
- The lifetime mortgage is portable to an alternative property, with no increase in the rate of interest.
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No, there are no monthly repayments made on this mortgage and we don’t require evidence of income, although a statement of income will be requested on application.
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Yes, one voluntary payment each year is allowed up to a maximum of 10% of the capital balance, not including interest, without incurring an Early Repayment Charge (ERC).
Beyond that, ERCs apply for 10 years starting at 10% in the first year, stepping down 1% each year.
ERCs are only applicable to the original capital balance, not accrued interest.
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Scottish Widows Bank will arrange and pay for an independent valuer to carry out a physical inspection of the property to provide a valuation for lending purposes only.
There will be no cost to the applicant and the valuer’s decision will be final.
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No, there is no arrangement fee or valuation fee charged.
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The mortgage runs for the lifetime of the borrower or until they move into long-term care.
The term end date on the mortgage offer is therefore for illustration only. Interest will continue to accrue after this date until the loan is repaid.
The loan must be repaid no later than 12 months after either:
- The death of the borrower(s) (the last surviving borrower for joint mortgages)
- The borrower(s) move into long-term care or sheltered accommodation (the last remaining borrower for joint mortgages)
If the property stops being the borrower’s main residence for any other reason, the loan must be repaid. This applies to the last remaining borrower.
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Yes, they can take an initial advance and a future release.
The value of a future release can’t be more than 50% of the total facility. For example, if the total facility is £30,000 the maximum the borrower can hold as a future release is £15,000. Additional criteria apply.
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Not yet. We’re rolling out our lifetime offer to intermediaries over the course of 2021.
We’re currently distributing through selected brokers and are steadily increasing this in the coming months.
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No, this is only a re-mortgage product. However we do allow porting for existing Scottish Widows Bank Lifetime Mortgage customers.
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Our system does not have the ability to create a KFI for the client's next birthday and so it will be based on their current age.
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Yes, if the client downsizes after five years and takes out a new mortgage, we’ll waive the ERC charge that would have been applicable.
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We will not progress with an application where one or both of the clients have Power of Attorney in place.
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For additional information contact your Scottish Widows Bank BDM.
