Lifetime Mortgage

Our lifetime mortgage helps customers release equity from their homes with a lump sum amount and an option to have a future release facility to support their long term needs

Key benefits and protections

 
  • Interest rate fixed for the life of the mortgage
  • No monthly interest payments during the customer's lifetime
  • Future release (Drawdown) facility available
  • Bereavement exemption with no time limit (no ERC’s should the remaining borrower decide to redeem)
  • No Negative Equity Guarantee (NNEG)
  • A percentage of the property equity can be protected for inheritance or care 
  • A Portable product
  • Further Advances available after initial 12 month qualifying period and subject to our lending criteria
     

The SWB Lifetime mortgage is available to a restricted panel of advisers. If you or your firm are not on this panel you will not be able to submit an application.

Please contact your BDM or email us at SWBLifetime@scottishwidows.co.uk for more information and to discuss joining our Lifetime Mortgage Panel.   

For more information please see our Lifetime Mortgage Lending Guide (PDF, 938KB)
 

Lifetime Mortgage information

  • Lump Sum

    All Lifetime products feature:

    • Free conveyancing
    • A free property valuation
    • £600 cashback toward independent legal fees

    Future Release

    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
    • Our Lifetime products are available for remortgage applications only. 
       

    See our Lifetime rates.

    Please see ‘Early Repayment Charges’ tab for details of ERCs that apply.

  • Lump Sum

    Interest rates effective from Wednesday 29th November 2023.

    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 6.20% £30,000 £1,500,000
    LS2

    (Remortgage)

    Lump Sum Only

    Fixed 6.27% £30,000 £1,500,000
    LS3

    (Remortgage)

    Lump Sum Only

    Fixed 6.34% £30,000 £1,500,000
    LS4

    (Remortgage)

    Lump Sum Only

    Fixed 6.41% £30,000 £1,500,000
    LS5

    (Remortgage)

    Lump Sum Only

    Fixed 6.48% £30,000 £1,500,000
    LS6

    (Remortgage)

    Lump Sum Only

    Fixed 6.55% £30,000 £1,500,000
    LS7

    (Remortgage)

    Lump Sum Only

    Fixed 6.62% £30,000 £1,500,000
    LS8

    (Remortgage)

    Lump Sum Only

    Fixed 6.76% £30,000 £1,500,000
    LS9

    (Remortgage)

    Lump Sum Only

    Fixed 6.95% £30,000 £1,500,000
    LS10

    (Remortgage)

    Lump Sum Only

    Fixed 7.31% £30,000 £1,500,000

    Please see ‘Early Repayment Charges’ tab for details of ERCs that apply.
     

    Loan to Value (LTV)

    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/FA7

    LS8/FA8

    LS9

    LS10

    FA0

    55 5.40% 7.50% 7.75% 8.00% 9.00% 10.20% 11.40% 14.10% 15.20% 16.85% 16.85%
    56 6.10% 8.10% 8.55% 9.00% 10.00% 11.25% 12.50% 15.20% 16.45% 17.90% 17.90%
    57 6.70% 8.70% 9.35% 10.00% 11.00% 12.28% 13.55% 16.25% 17.65% 18.95% 18.95%
    58 7.30% 9.30% 10.15% 11.00% 12.00% 13.33% 14.65% 17.35% 18.90% 20.05% 20.05%
    59 7.90% 9.90% 10.95% 12.00% 13.00% 14.35% 15.70% 18.40% 20.10% 21.10% 21.10%
    60 8.90% 11.00% 12.00% 13.00% 14.00% 15.40% 16.80% 19.50% 21.35% 22.15% 22.15%
    61 9.50% 12.00% 13.05% 14.10% 15.10% 16.58% 18.05% 20.60% 22.50% 23.25% 23.25%
    62 10.50% 13.00% 14.10% 15.20% 16.20% 17.75% 19.30% 21.70% 23.60% 24.30% 23.40%
    63 11.50% 14.00% 15.15% 16.30% 17.30% 18.90% 20.50% 22.80% 24.75% 25.35% 25.35%
    64 12.50% 15.00% 16.20% 17.40% 18.40% 20.08% 21.75% 23.90% 23.85% 26.45% 26.45%
    65 13.50% 16.00% 17.25% 18.50% 19.50% 21.25% 23.00% 25.00% 27.00% 27.50% 27.50%
    66 14.50% 17.00% 18.35% 19.70% 20.50% 22.25% 24.00% 26.00% 28.00% 28.50% 28.50%
    67 15.50% 18.00% 19.45% 20.90% 21.50% 23.25% 25.00% 27.00% 29.00% 29.50% 29.50%
    68 16.50% 19.00% 20.55% 22.10% 24.00% 25.50% 27.00% 29.15% 30.65% 31.30% 31.30%
    69 17.50% 20.00% 21.65% 23.30% 25.00% 26.50% 28.00% 30.15% 31.65% 32.30% 32.30%
    70 18.50% 21.00% 22.75% 24.50% 26.00% 27.50% 29.00% 31.15% 32.65% 33.30% 33.30%
    71 19.50% 22.00% 23.70% 25.40% 27.00% 28.50% 30.00% 32.15% 33.65% 34.30% 34.30%
    72 20.50% 23.00% 24.65% 26.30% 28.00% 29.50% 31.00% 33.15% 34.65% 35.30% 35.30%
    73 21.50% 24.00% 25.60% 27.20% 28.50% 29.88% 31.25% 33.35% 34.90% 35.60% 35.60%
    74 22.50% 25.00% 26.55% 28.10% 29.00% 30.25% 31.50% 33.60% 35.20% 35.90% 35.90%
    75 23.50% 26.00% 27.50% 29.00% 30.00% 31.25% 32.50% 34.60% 36.20% 36.90% 36.90%
    76 24.50% 27.00% 28.40% 29.80% 30.80% 32.05% 33.30% 35.40% 37.00% 37.70% 37.70%
    77 25.50% 28.00% 29.30% 30.60% 31.60% 32.85% 34.10% 36.20% 37.80% 38.45% 38.45%
    78 26.50% 29.00% 30.20% 31.40% 32.40% 33.65% 34.90% 37.05% 38.55% 39.25% 39.25%
    79 27.50% 30.00% 31.10% 32.20% 33.20% 34.45% 35.70% 37.85% 39.35% 40.00% 40.00%
    80 28.50% 31.00% 32.00% 33.00% 34.00% 35.25% 36.50% 38.65% 40.15% 40.80% 40.80%
    81 29.20% 31.70% 32.80% 33.90% 34.95% 36.08% 37.20% 39.30% 40.75% 41.35% 41.35%
    82 29.90% 32.40% 33.60% 34.80% 35.90% 36.93% 37.95% 39.95% 41.30% 41.90% 41.90%
    83 30.60% 33.10% 34.40% 35.70% 36.80% 37.73% 38.65% 40.55% 41.90% 42.45% 42.45%
    84 31.30% 33.80% 35.20% 36.60% 37.75% 38.58% 39.40% 41.20% 42.50% 43.05% 43.05%
    85 32.00% 34.50% 36.00% 37.50% 38.70% 39.40% 40.10% 41.85% 43.10% 43.60% 43.60%

    The rate of interest payable varies across the LTV groups. 
     

    Future Release

    Interest rates effective from Wednesday 29th November 2023.

    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 6.20% £30,000 £1,500,000
    FR2

    (Existing Customer)

    Future Release Only

    Fixed 6.27% £30,000 £1,500,000
    FR3

    (Existing Customer)

    Future Release Only

    Fixed 6.34% £30,000 £1,500,000
    FR4

    (Remortgage)

    Lump Sum Only

    Fixed 6.41% £30,000 £1,500,000
    FR5

    (Remortgage)

    Lump Sum Only

    Fixed 6.48% £30,000 £1,500,000
    FR6

    (Remortgage)

    Lump Sum Only

    Fixed 6.55% £30,000 £1,500,000
    FR7

    (Remortgage)

    Lump Sum Only

    Fixed 6.62% £30,000 £1,500,000
    FR8

    (Remortgage)

    Lump Sum Only

    Fixed 6.76% £30,000 £1,500,000

    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.

  • 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 and maximum age limits apply to the younger applicant, therefore, the older applicant can be above the maximum age limit
      • Maximum number of applicants – two
    • Minimum facility – £30,000
    • Maximum facility – £1,500,000

    Acceptable loan purposes:

    Below are some examples of what is acceptable and unacceptable reasons for lending under each loan purpose.

      Acceptable Unacceptable
    Paying off existing Mortgage
    • Repay existing residential mortgage secured on main residence (all secured charges must be repaid on completion)
    • Repay existing mortgage secured on an additional property e.g. buy-to-let (BTL). This is only available where there are no existing secured charges on the customer’s main residence or these are repaid by this Lifetime mortgage which, will be registered against the customer’s main residence
    • No second or subsequent charges can remain on the property title after Scottish Widows Bank’s (SWB) first charge
    • Repay existing mortgage in someone else’s name
    Consolidating my debts
    • Loan and Credit Card debt
    • Payday loans
    • Student loans
    Helping Friends and Family (Cash Gift)
    • Cash gift as lump sum
    • Use towards a current or new business venture/ investment where the applicant holds an interest in the business/investment (direct or otherwise)
    • A repayable loan (it must be a gift)
    • Use towards assets which remain in applicant’s name
    • Illegal, speculative or gambling purposes
    Property Modifications
    • Minor modifications made to your existing main residential property, subject to a valuation 
    • Modifications made to other properties (as long as the funding is being taken from main place of residence)
    • Essential repairs on any property owned by borrower
    • Any Property Modifications that may take the customer’s property into our Unacceptable Property Types (see Property Criteria section) 
    My Lifestyle
    • Leisure e.g. holidays
    • Milestone purchases e.g. new car, holiday home
    • Repay existing mortgage secured on an additional property e.g. buy-to-let (BTL). This is only available where there are no existing secured charges on the customer’s main residence or these are repaid by this Lifetime mortgage which, will be registered against the customer’s main residence
    • Purchase of a new buy-to-let (BTL) in borrower’s name and not a special purpose vehicle (SPV). This is only available where there are no existing secured charges on the customer’s main residence or these are repaid by this Lifetime mortgage which, will be registered against the customer’s main residence
    • Medical bills
    • Timeshare purchase
    • Use towards a current or new business venture / investment where the applicant holds an interest in the business / investment (direct or otherwise)
    • Illegal, speculative or gambling purposes
    Other Non-Acceptable Reasons 
    • When the ownership of property is less than 6 months
      due to inheritance of the property due to the death
      of the previous property owner
    • Where the applicant is seeking to borrow against a property which they acquired less than 6 months ago, except where they inherited the property following the death of the previous owner
    • Where the applicant has not met the Property Criteria
    • Where the use of the money results in the Property Criteria subsequently not being met

     

  • MINIMUM / MAXIMUM PROPERTY VALUE

    Minimum property value – £100,000 (£150,000 on ex-Local Authority, ex-Ministry of Defence and ex-Housing Association properties; £200,000 on Age Restricted Property/Sheltered Housing)

    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.

    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:

    • Property must be in good repair and suitable for lending
    • Name(s) on Title Deeds must match applicant(s). If these do not match at point of application, the solicitor will need to amend the deeds to match 
    • 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
    • Owned by the applicant for at least 6 months, except where they inherited the property following the death of the previous owner.


    EXAMPLES OF UNACCEPTABLE PROPERTY TYPES

    Property types which are not acceptable include:

    • Properties that have an estate management fee and the applicants do not have a share in the management company
    • 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
    • Age restricted property e.g. retirement villages and sheltered housing with either value less than £200,000, less than 3 years old or resale/exit fee greater than 3% of property value
    • 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
    • Freehold flats, caravans, crofted houses, park homes and log cabins
    • Commonhold
    • Property intended for commercial purposes

    • Construction types which are not acceptable include:

    • 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
    • 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
    • 100% flat roof
    • Construction of Roof is Thatch or Thatched roofing on a non-detached property
    • 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 in England/Wales or Grade A in Scotland ; other listed properties can be considered only where detached
    • The following property circumstances would also be unacceptable:

    • 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
    • Where a property, including any outbuildings or garden land, is threatened by flooding or coastal erosion the property will be assessed for flood risk. 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 five acres of land, the valuation will only give credit to the first five acres. Any remaining land must not have any commercial / agricultural use
    • Property built on contaminated land
    • Property which has a service charge which exceeds 2% 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 accessed via unadopted roads which are due for adoption by the Local Authority, unless there is a section 38 agreement in place (these are typically roads on modern estates)
    • Property that is subject to chancel liabilities or manorial rights entries
    • Property that may be impacted by major infrastructure projects
    • Property that has a shared septic tank.
  • Interest rates effective from Wednesday 29th November 2023.

    We reserve the right to change our product rates at any time.

    Code Customer Type Rate Min Further Advance Max Further Advance

    FA0
    Existing customer
    Further Advance Only
    Fixed 7.31% £5,000 Subject to not exceeding maximum loan to value % for the customer age

    At the time of a further advance 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 (including any existing ring fenced %) a full valuation will be required, this will be arranged by SWB but payable by the customer​.

    Early Repayment Charges will apply to a Further Advance please see Early Repayment Charges section below.

    Eligibility

    Customers can apply for a Further Advance following the 12 month anniversary of opening their lifetime mortgage and subject to our lending criteria. 

    Customers can apply for subsequent Further Advances six months following completion of their previous Further Advance.​​

    Independent Legal Advice 

    Customers will require independent legal advice in the following circumstances:

    • Their ringfenced % is being amended
    • A Power of Attorney has been added and the Attorney has not previously had independent legal advice on the Lifetime Mortgage.

    You / adviser should consider if customers require independent legal advice when there’s been any significant changes to the customer’s circumstances for example one or more of the following:

    • The death of one party
    • A move to another property
    • Divorce and/or remarriage or co-habitation.
    • A member of the family, friend or a companion coming to live with the customer 
    • Any significant change to the customer’s physical or mental health.
    • A family member or professional carer attending regularly to give care, or living in the property and what, if any, access to/control over the customer’s financial affairs such a person might have.
    • Any other issues which could affect the customer’s circumstances or capacity which may not be addressed sufficiently by the financial advice which will be given in connection with the further advance.

    If independent legal advice is deemed necessary this must be obtained prior to completion and paid for by the customer.

  • ERC’s are only applicable to the original capital balance of each sub account, not accrued interest. A new ten year ERC period will apply on completion of each Future Release and Further Advance sub account. After the mortgage term of each sub account has been running for ten years an ERC will no longer apply.

    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

Please ensure the following documents are provided to your clients at the start of the sales process

Lifetime Mortgage Lending Guide (PDF, 2MB)

Further Advance Declaration (PDF, 50KB)

Customer Privacy Statement (PDF, 595KB)

Lifetime Mortgage Customer Declaration (PDF, 54KB)

Equity Release Council Statement of Principles (PDF, 50KB)

Frequently Asked Questions (PDF, 57KB)

 

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