Scottish Widows Equity Release And Lifetime Mortgage Review in 2024

Are You Considering Scottish Widows Equity Release? Discover the Pros, Cons, Fees, Interest Rates and Scheme Features. Read On…
  • Last Updated: 05 Feb 2024
  • Fact Checked
  • Our team recently fact checked this article for accuracy. However, things do change, so please do your own research.

Contributors:

Francis Hui

Key Takeaways

  • Scottish Widows, established in 1815 and based in Edinburgh, Scotland, is one of the UK's oldest pensions and insurance providers and a subsidiary of Lloyds Banking Group.
  • Scottish Widows offers an equity release calculator on it's website, assisting users in estimating potential equity release amounts from their property.
  • The company provides equity release plans as lifetime mortgages, allowing homeowners to unlock a lump sum from their property's value.
  • Scottish Widows' product range includes drawdown and lump-sum lifetime mortgages, offering fixed interest rates for life and optional monthly interest payments.
  • The review of Scottish Widows' equity release services involved an analysis of the business, it's product flexibility, and comparison of its rates and fees against other providers​​​​​​​​​​.
  • Currently, equity release rates are between 5.20% to 6.30%*

Are you a UK-based homeowner looking at Scottish Widows' equity release plans to fund your retirement? 

Choosing the right equity release provider is a crucial step in this process. This can be daunting, yet it is so vital.

The good news is that we are here to help.

In This Article, You Will Discover:

    We have researched the best companies for equity release and many schemes to provide you with the most up-to-date information on equity release companies in 2024. 

    We have done the research, so you do not have to. 

    Here is what we found about equity release from Scottish Widows.

    Therefore:

    NOTEEvery Investor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of Every Investor only and may not reflect the views or opinions of Scottish Widows. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by Scottish Widows.

    Understanding Equity Release Fundamentals

    Equity release is a financial strategy for those over 55 to utilize the equity in their homes. It enables converting a portion of your home’s value into accessible funds, without the need for sale.

    Its distinctive repayment arrangement involves paying back the loan and interest from the eventual sale of the property, typically occurring after the homeowner's critical life events.

    Who Is Scottish Widows?

    Scottish Widows is one of the UK’s oldest pensions and insurance providers, established in 1815 in Edinburgh, Scotland. 1

    It launched the Scottish Widows Bank in 1995, offering a range of mortgage products, including lifetime mortgage products.

    Scottish Widows reentered the equity release market in 2020 using a select number of brokers.

    It is a subsidiary of Lloyds Banking Group.

    Why You Should Consider Scottish Widows

    You should consider Scottish Widows because it is a household brand, recognised as one of the strongest life lending and pension companies in the UK.2 

    Originally started in 1815 as a mutual, it now looks after 6mln UK customers under the Lloyds Banking Group umbrella.3

    Does Scottish Widows Have an Equity Release Calculator?

    Yes, Scottish Widows has an equity release calculator, but try the calculator below for an approximation of how much equity you may be able to release from your property.

    What Services Do Scottish Widows Offer?

    Scottish Widows offers pensions, savings, and investments under the Lloyds Banking Group.

    It offers equity release plans as lifetime mortgages that allow you to unlock a lump sum from the value of your property.

    Do Scottish Widows Offer Equity Release or Lifetime Mortgages?

    Yes, Scottish Widows offers equity release as lifetime mortgages to UK homeowners over the age of 55.

    Scottish Widows' Equity Release Schemes

    Scottish Widows' product range includes drawdown and lump-sum lifetime mortgages.  

    The interest is not payable monthly unless you choose that option and comes with a fixed interest rate for life, which helps you predict costs‌.

    Scottish Widows has provisions allowing you to protect a percentage of the property’s value to finance care or make provisions for inheritance reasons.

    Free valuation and £600 cashback to assist with your costs.

    *The features mentioned and the amounts raised, are subject to the lender’s criteria, terms, and conditions.

    Scottish Widows' Equity Release Scheme Features

    The Scottish Widows lifetime mortgage helps UK homeowners over the age of 55 to access a cash lump sum with the option of releasing future amounts. 

    The equity release charges and rates are always clear.

    In addition, you can choose to make optional repayments while benefiting from a range of other product features and safeguards.

    Key features include:

    • No 'negative equity guarantee' so you will never have to repay more than the open market sale proceeds of the property.
    • You can protect a percentage of the property value for inheritance or care.
    • Future release functionality is available for seven years.
    • No early repayment charges.
    • The interest rate is fixed for the life of the mortgage.
    • No monthly interest payments during your lifetime.
    • Downsize protection.
    • Voluntary / partial repayments are available with no early repayment charge.

    What Are Scottish Widows' Equity Release Interest Rates?

    Scottish Widows offers fixed interest rates for the lifetime mortgage between 5.20% to 6.30%*. 

    The rate payable depends on the age of the applicant(s) and the LTV banding the applicants qualify for.

    Annual interest rates can be available from as low as 5.20% to 6.30%* (AER).

    *While we regularly review our rates, these may have changed since our last update.

    What Are Scottish Widows' Fees?

    Scottish Widows offers a free valuation and £600 cashback to assist with your costs.

    What Are The Advantages and Disadvantages of Scottish Widows?

    The advantages and disadvantages of Scottish Widows include the fact that it is a household name and one of the UK’s oldest pensions and insurance providers, but that only some brokers offer these products.

    Scottish Widows Pros

    Pros of using Scottish Widows:

    • It offers a cash lump sum and draw-down option.
    • It offers a fixed interest rate for the life of the mortgage.
    • You can protect a percentage of your property value for inheritance or care.
    • It offers a free valuation and £600 cashback to assist with your costs.
    • It is authorised and regulated in the UK by the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA).

    Scottish Widows Cons

    Cons of using Scottish Widows:

    • It's products are only available through a select number of brokers.
    • Equity Release will impact the amount of inheritance you can leave.
    • Equity Release may not be suitable for everyone, which is why your advisor will ask you to consider other options before proceeding.
    • Once you have taken out an equity release plan, no other borrowing can be taken out using your home as security.

    How Did We Review the Information on Scottish Widows?

    We analysed the business and reviewed the available information to bring you all the details you need in one place.

    NOTE: This article is an unaffiliated, independent, third-party, review of Scottish Widows.

    Scottish Widows Customer Reviews

    It is worth conducting your own due diligence so you find the equity release provider that suits your specific requirements and situation. 

    Read reviews for Scottish Widows on websites such as Trustpilot Reviews to see what it's customers say:

    Scottish Widows Complaints

    If you are dissatisfied with Scottish Widows and want to lodge a complaint, contact them directly on their website.

    Alternatively, use a review site like Trustpilot of Feefo, leave a review and they will respond to you.

    Scottish Widows FCA Details

    FCA Address

    69, Morrison Street, Edinburgh, Midlothian, EH3 8YF, UK.

    Trading Names

    • Halifax Financial Services
    • Scottish Widows Limited
    • Clerical Medical

    FCA Permitted Services

    • Insurance
    • Banking
    • Pensions
    • Investments
    • Other Services

    Regulators

    • Financial Conduct Authority (FCA)
    • Prudential Regulation Authority (PRA)

    Registration Numbers

    • FCA Ref Number: 181655
    • Companies House Number: 03196171

    FCA and Companies House Link

    Scottish Widows Contact Number and Address

    • +44 333 207 4007
    • 193, Dalry Rd, Edinburgh, EH11 2EF, UK.

    Common Questions

    Is Scottish Widow a Member of the Equity Release Council?

    Who Owns Scottish Widows?

    How Can I Apply for a Job at Scottish Widows?

    Does Scottish Widows Offer Equity Release?

    Is Scottish Widows' Equity Release Safe?

    In Conclusion

    Scottish Widows is one of the UK’s oldest pensions and insurance providers, established in 1815 in Edinburgh, Scotland. 

    It offers equity release plans to UK homeowners from 55 years old as lifetime mortgages. It allows you to unlock a lump sum from the value of your property with an option to release further equity in the future.

    Scottish Widows equity release products offer a fixed interest rate for the life of the mortgage and you can protect a percentage of the property value for inheritance or care.

    Scottish Widows equity release is authorised and regulated in the UK by the Financial Conduct Authority (FCA) and is a member of the Equity Release Council.

    It is a safe equity release provider.

    The features mentioned and the amounts raised, are subject to the lender’s criteria, terms, and conditions. These may take into account the age, health, and lifestyle factors in order to provide an enhanced amount. To understand the features and risks, ask for a personalised illustration.

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