Key Features
Interest Rate
Fixed for the life of the mortgage.
Product Details
Lump sum release.
Method of Repayment
Interest Only
- Interest is normally capitalised, as repayments are not made by the borrower. The original mortgage plus interest is repaid in full from the sale of the property.
- The client will have the option to pay interest monthly provided that this is selected on application. Once selected, this option is fixed.
Availability
- Borrower(s) aged 60 or over
- Maximum of 2 borrowers.
Loan Purpose
Any purpose. Please note, the Scottish Widows Bank Lifetime Mortgage is not linked with any investment product.
Minimum Borrowing
£10,000
Further Advances
All further advances will be subject to lending criteria and interest will be charged at the rate prevailing at that time - minimum £5,000.
Term
For life of single or surviving borrower, or until surviving borrower moves into long term care or property is sold when borrower moves house.
Early Repayment Charge
If the mortgage is redeemed within the first ten years and early repayment charge equal to 5% of the original amount borrowed will become payable. If the mortgage is repaid on death or if the borrower moves permanently into long term care, then these charges do not apply.
Booking Fee
£495 - Non refundable fixed rate booking fee
Portability
This product is portable. The mortgage can be transferred to a new property subject to assessment.
Solicitors
Borrower(s) must be represented by their own solicitor.
Our Undertaking
Scottish Widows Bank undertake that the borrower will never have to pay back more than the open market proceeds of the property when the mortgage is repaid. Borrowers can continue to live in their property until the sale of the house, movement into long term care or on death. Scottish Widows Bank will not repossess the property if the accumulated debt exceeds the property value.
Declarations/Safeguards
- Applicants should seek financial advice from a qualified source independent of Scottish Widows Bank.
- Applicants should consult a solicitor.
- Applicants’ Mortgage Intermediary should check eligibility for State Benefit.
- Applicants should involve family in the decision to take a Lifetime Mortgage.
Property
- Mortgage free (or have a small mortgage outstanding - in this case part of the mortgage must be used to repay outstanding debt).
- Property is in good repair.
- Have at least 80 years remaining on a lease.
- Property title has to be in joint names (if applicable).
Exclusions
No Power of Attorney applications
Interest Rates
