Scottish Widows, the life insurance and pensions company, has announced that it is piloting an equity release lifetime mortgage product.
Bower are delighted to announce a new equity release product from Scottish Widows. Bower are one of a few chosen specialist equity release brokers to offer this product to new and existing customers.
The lifetime mortgage was initially being trialled through Age Partnership, and Scottish Widows confirmed that they have now expanded the pilot through Bower, the equity release specialist.
As part of our ongoing commitment to the mortgage market, we continually review our offering, introducing new products and services as customer needs continue to change.
Offering a mortgage with the option to unlock some of the equity in their property gives customers greater choice to help make the most of their assets in retirement.
People are living and working for longer, and as a result they are also facing new choices when it comes to planning for their financial future.
Offering a mortgage with the option to unlock some of the equity in their property gives customers greater choice to help make the most of their assets in retirement.Claire Scott, head of business development at Scottish Widows
Key product information
- Minimum age – 55 years
- Maximum age – 85 years
For joint applications, the minimum age applies to the youngest applicant, the maximum age applies to the oldest applicant.
- Minimum facility – £30,000
- Maximum facility – £600,000
The total facility allowable is inclusive of an initial advance and a future release. A future release is not compulsory, applicants may apply for a single advance up to the maximum loan to value (LTV).
If a future release is requested, the value of this cannot be more than 50% of the total facility. For example, if the total facility is £30,000 the maximum the borrower can hold as a future release is £15,000.
LOAN TO VALUE LENDING LIMITS
The maximum LTV will be dependent on the age of the applicant(s). For joint applications, it will be dependent on the age of the youngest applicant.
INTEREST RATE PAYABLE
Rates are fixed for the life of the mortgage. The rate of interest payable will be dependent on the age of the applicant(s) and the LTV banding the applicant(s) qualify for. For joint applications, it will be dependent on the age of the youngest applicant.
NO NEGATIVE EQUITY GUARANTEE
Our Lifetime mortgage comes with a No Negative Equity Guarantee (NNEG) ensuring the borrower will never have to repay more than the open market sale proceeds of the property when the loan is repaid following the death of the borrower(s) (the last surviving borrower for joint mortgages) or the borrower(s) move in to long term care or sheltered accommodation (the last remaining borrower for joint mortgages).