Compare Scottish Widows Bank Equity Release Quotes Against The Market

Important Clarification: Scottish Widows Bank has largely withdrawn from the standard mortgage market.

As of November 2023, Scottish Widows Bank stopped accepting new applications for standard residential mortgages (including their famous Offset and Professional mortgages).

• Standard Mortgages (Homeowners/BTL): Closed to new business. Existing customers are kept but cannot take out a new mortgage elsewhere with them.

• Lifetime Mortgages (Equity Release): ACTIVE. The bank has pivoted to focus purely on the "Later Life Lending" market. You can still apply for a Scottish Widows Lifetime Mortgage.

Ownership: Scottish Widows Bank is part of Lloyds Banking Group (which also owns Halifax and Bank of Scotland).

For independent advice and a whole-of-market comparison of Scottish Widows’ lifetime mortgage range, contact one of our equity release advisers below:

1. For New Customers (Lifetime Mortgages)

Scottish Widows is now strictly a Lifetime Mortgage (Equity Release) lender for new business.

• What is it? A loan secured against your home that allows you (if aged 55+) to release tax-free cash without having to make monthly repayments. The interest rolls up and is paid when you die or move into care.

• Key Features:

  • Lump Sum or Drawdown: You can take a big pot of cash or a smaller amount with a reserve facility to draw on later.

  • No Negative Equity Guarantee: You (or your estate) will never owe more than the property is worth when sold.

  • Protections: As part of Lloyds Banking Group, they adhere to strict Equity Release Council standards.

2. For Existing Mortgage Customers (Standard/Offset)

If you have a standard Scottish Widows mortgage (likely an Offset or Professional mortgage taken out before Nov 2023), you are now in a "closed book" status, but being managed by a major banking group means you are safe.

• Product Transfers: When your fixed rate ends, you are not trapped. You can switch to a new "existing customer" rate online. You should check if these rates are competitive against the wider market, as closed-book lenders sometimes offer less aggressive pricing than active ones.

• Offset Benefits: If you have one of their legacy Offset Mortgages, it is likely one of the most flexible ever sold in the UK (allowing you to offset against term or payments).

  • Advice: Think very carefully before remortgaging away from this. Few modern lenders offer offset facilities this flexible. If you leave, you likely cannot get this product back.

• Borrowing More: You can typically still apply for "Additional Borrowing" (Further Advance) for home improvements, subject to affordability.

3. Savings Accounts

Scottish Widows Bank remains active in the savings market, often acting as a cash hub for pension customers or high-net-worth individuals.

• Connectivity: Their savings accounts often link seamlessly with their legacy Offset mortgages.

Pros and Cons

Pros:

• Existing Offset Customers: You hold a "gold dust" product. The ability to use savings to reduce your mortgage term is powerful and rare in today's market.

• Safety: Backed by Lloyds Banking Group, one of the UK's "Big Four" banks.

• Lifetime Mortgages: A trusted household name in a market often populated by unfamiliar insurance brands.

Cons:

• Closed to New Standard Borrowers: If you are a young professional doctor (their old target market) looking for a new mortgage, you can no longer use Scottish Widows. You should look at Wesleyan or Investec instead.

• Service: Some existing customers report that since the "closure" to new business, the digital interface for mortgages hasn't been updated as frequently as the main Halifax/Lloyds apps.

Looking for indendent advice about whether Scottish widows is the right lifetime mortgage provider for you? Get started here to arrange a free, no-obligation chat with an equity release adviser who specialises in their product range.