What do you want to know about our Flexible Mortgage?
Additional mortgage borrowing
A mortgage can be a very cost effective way of borrowing money. That's why the Scottish Widows Bank Flexible Mortgage gives you the option of borrowing extra money - in addition to your main mortgage.
This is done via a separate Mortgage Reserve Account which can be set up when you take out your mortgage. And you can use the money for whatever you want, whenever you choose.
Mortgage Reserve Account
When you apply for a mortgage, we'll agree a maximum amount that you can borrow. If your main mortgage is less than this, you can also apply for a Mortgage Reserve Account.
This can have any limit - as long as the total amount of this account and your mortgage is within the agreed maximum. For example, if we were willing to lend £150,000 but you only needed a main mortgage for £130,000, you could apply for a Mortgage Reserve Account with a limit of up to £20,000.
There are no set up costs and borrowing is at our standard variable rate - lower than most personal loans, credit cards or overdrafts. And you can withdraw and deposit funds as and when you wish.
Even if you don't need the funds when you first take out the mortgage, with a Mortgage Reserve Account set up from the start the money will be there when you do. And if you ever need to take a payment holiday a Mortgage Reserve Account must be in place.
- Minimum limit £5,000, maximum normally £50,000.
- Minimum term 5 years, maximum 40 years or expected retirement age, whichever is earlier.
- Must be repaid in full over the term of the main mortgage.
- You don't need to make any repayments until the Mortgage Reserve Account limit is reached, but interest will be charged on the balance.
- Your monthly mortgage payment does not cover borrowing on your Mortgage Reserve Account.
