Scottish Widows Lifetime Mortgage LS3

Are You Considering the Lifetime Mortgage LS3 Scheme? What are the Eligibility Requirements, Features, Interest Rates & Scheme Options? Discover If This Equity Release Plan Is For You.

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Scottish Widows Lifetime Mortgage LS3 Scheme Review

Lifetime Mortgage LS3 Key Details

Type Rate APR
Scottish Widows Fixed 3.16% 3.2%

Scheme Incentives

  • Cashback
  • Free Valuation
  • Free Application

Scheme Offers

  • Protected Capital Guarantee
  • 10-Yr Fixed Early Repayment Charge

I think you’ll agree with me when I say:

It’s REALLY hard to choose the best equity release scheme with all the choices available.

Or is it?

Is the Scottish Widows Lifetime Mortgage LS3, equity release scheme the best?

Don’t let your equity release dream become a nightmare!

Luckily, we’re here to guide you on the ins and outs of equity release, as you deserve only the best.

However, it’s important to remember that not all plans are suited to each individual. You need to look for one that will serve your home, your lifestyle, and the reason why you’re considering equity release in the first place.

As leading experts in the field, we’ve delved into hours of research, unpacked all the equity release plans on the market (we’ve reviewed over 250 schemes!), and discovered the best in the business.

Could the Scottish Widows Lifetime Mortgage LS3 be the right equity release plan for you?
We’re here to help you:
Scottish Widows is one of the leading equity release providers on the market and might just be the answer you’ve been looking for.
Can you truly go wrong with Scottish Widows?

Let’s find out!

Who Are Scottish Widows?

Scottish Widows is a life insurance and pensions company located in Edinburgh, Scotland, and is a subsidiary of Lloyds Banking Group. Its product range includes life assurance and pensions. The company has been providing financial services to the UK market since 1815. The company sells products through independent financial advisers, direct to customers and through Lloyds Banking Group bank branches.
Learn more about the various Scottish Widows equity release schemes.
Scottish Widows Lifetime Mortgage LS3

Scheme Background

Homeowners are set to benefit with loan-to-value lifetime mortgage plans as household brand, Scottish Widows re-enters the equity release market in 2020 offering both drawdown and lump sum options.

Scottish Widows are recognised as one of the strongest life and pensions companies in the UK.

Originally started in 1815 as a mutual, it now helps 6 million UK customers plan their future finances – offering services from pensions through to savings and investments under the Lloyds Banking Group.

In 1995 Scottish Widows Bank was launched. It offered customers a range of mortgage products which included a period in the early 2000’s of providing lifetime mortgage products.

In addition, Scottish Widows took over the running of the popular Halifax Retirement Home Plan, which was withdrawn by Halifax in August 2011.

Eligibility & Requirements

The Scottish Widows Lifetime Mortgage LS3 is accessible to householders with a property worth of at least £100000 (£150000 for ex-council, ex-local authority, and ex-MOD houses).

Minimum Property Valuation

The Scottish Widows Lifetime Mortgage LS3 is accessible to householders with a property worth of at least £100000 (£150000 for ex-council, ex-local authority, and ex-MOD houses).

Property Location Requirements

The property must be the primary residence, located in England, Wales, or Mainland Scotland, and have a maximum value of £2000000.

Single vs Joint

This equity release plan from Scottish Widows is available to a maximum of two applicants on a single and joint life basis. The minimum age at inception is 55 years, and the maximum age for admission is 85 years (of the youngest).

Minimum Release

The minimum loan amount is £30000, with a maximum loan amount of £600000. Bespoke quotations for loans in excess of £600,000 may be available.

Scheme Features

The Scottish Widows Lifetime Mortgage LS3 program is designed to provide a straightforward one-time cash lump amount with a set lifetime rate of interest. The plan effectively charges interest on a monthly basis, with the option to make payments (see later).

The industry-recognized ‘No Negative Equity Guarantee’ is included with all versions of the Scottish Widows Lifetime Mortgage.

Valuation Features

The Scottish Widows range of lump sum plans is presently offering a substantial free unlimited valuation.

Early Repayment Feature

The Scottish Widows range of lifetime mortgage plans features defined 10-year early repayment charges (ERCs), which means that a fixed percentage based on the original amount borrowed would be levied within a specified time frame. These ERCs begin at 10% in year one and gradually decrease by 1% every year until year ten, when no penalty is imposed.

Equity Release Council Status

Scottish Widows is a member of the Equity Release Council, which ensures that any beneficiaries are not burdened by debts in excess of the property’s final worth.

Joint Application Features

This equity release plan from Scottish Widows is available to a maximum of two applicants on a single and joint life basis. The minimum age at inception is 55 years, and the maximum age for admission is 85 years (of the youngest).

Scheme Options

Although the Scottish Widows Lifetime Mortgage is effectively a roll-up lifetime mortgage, the plan includes a 10% Voluntary Payment Option.

Homeowners can so pick their amount of contribution (if any) to the interest levied by Scottish Widows, with no affordability or evidence of income required, regardless of age, pre or post-retirement.

Repayment Options

Making Voluntary Payments assists in managing the plan’s future balance by allowing administration of the lump sum lifetime mortgage on an interest-only or capital and repayment basis, or simply ad hoc whenever the need arises. This might be useful for those who want to ensure that their beneficiaries receive some type of inheritance.

Inheritance Protection

This Scottish Widows drawdown plan has an inheritance protection component known as the Protected Capital Guarantee. Scottish Widows can ring-fence and protect a percentage of the future sale value of the property, based on the amount initially withdrawn, at no additional cost to the homeowner.

Application Fees

The Scottish Widows collection of lump sum plans is presently offering a generous free unlimited valuation, and there is no application cost.

Cashback Options

There will be a £600 refund upon completion of the lifetime mortgage, allowing for fee-free admission at the time of application.

Scottish Widows's Other Equity Release Schemes

Are you looking for a specific equity release scheme?

These are some of the schemes offered by Scottish Widows.

Before You Go

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50000

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Editorial Note: This content has been independently collected by the SovereignBoss team and is offered on a non-advised basis. SovereignBoss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.

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