FAQs
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Yes, Scottish Widows Bank Lifetime Mortgages meet the Equity Release Council Standards. Intermediaries must also be a member of the Equity Release Council to join our Lifetime Mortgage panel and offer this product.
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No, there are no monthly repayments required on this Mortgage and we don’t require evidence of income.
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After your client has had their Lifetime Mortgage for 12 months they can apply for a Further Advance subject to our lending criteria. Additional borrowing may be available before 12 months in exceptional circumstances such as essential repairs e.g. boiler replacement, replacement of a damaged roof. Please contact our customer service team on 0345 845 0829 for further information.
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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). 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 for an independent valuer to carry out a physical inspection of the property to provide a valuation for lending purposes only. For Lifetime Mortgage applications Scottish Widows Bank will cover the cost. For Further Advance applications the customer will cover the cost. The valuer’s decision will be final.
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Can we proceed where there is Power of Attorney already in place for the clients? expandable section
We do not accept applications where an attorney is acting on behalf of the customer. Scottish Widows Bank only accept Mortgage applications from the actual customer(s).
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Unfortunately, this product is only available for re-mortgages. We do allow porting for existing Scottish Widows Bank Lifetime Mortgage customers.
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Our system will not allow you 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 your client is moving home more than five years after the Lifetime Mortgage completes, and they wish to transfer their Lifetime Mortgage product to a new property, but the new property does not meet our lending and/or property criteria applying at that time, they can repay their Lifetime Mortgage without incurring an Early Repayment Charge.
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Yes, where a Lifetime Mortgage is held by joint borrowers and one of the borrowers either dies or goes into long term care, we will not charge Early Repayment Charges if the remaining borrower decides to redeem the mortgage.
