Scottish Widows Lifetime Mortgage LS4

Are You Considering the Lifetime Mortgage LS4 Scheme? What are the Eligibility Requirements, Features, Interest Rates & Scheme Options? Discover If This Equity Release Plan Is For You.

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Lifetime Mortgage LS4 Key Details

Type Rate APR
Scottish Widows Fixed 3.26% 3.30%

Scheme Incentives

  • Cashback
  • Free Valuation
  • Free Application

Scheme Offers

  • Protected Capital Guarantee
  • 10-Yr Fixed Early Repayment Charge
Scottish Widows Lifetime Mortgage LS4

Scottish Widows Lifetime Mortgage LS4 Review

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 LS4, equity release scheme the best?

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

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

However, 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 LS4 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!

What's Equity Release & How Does It Work?

We've summed up the most important information about the topic in this quick video.

An equity release mortgage is, in a nutshell, a loan plus interest that is paid back to the lender when the homeowner passes away or goes into permanent care. The homeowner’s family usually pays back the cash released, and the interest incurred, from the sale of the home in question.

Equity release is available for individuals or couples over 55, with the youngest homeowner’s age determining the amount of equity that can be released. It is important to note that some equity release schemes may require the homeowner to be 60 or older.

Learn More: What’s Equity Release & How Does It Work?

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Most popular reasons for releasing equity

Who Are Scottish Widows?

A little bit about them.
Learn a bit more about them here.

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 LS4 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 LS4 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 LS4 program is designed to provide an initial cash lump amount with a set lifetime interest rate and future access to a cash release facility if needed. Where the maximum lending facility is not required initially, any future cash flow is accessible. As a result, the unused cash portion can be identified as the future release facility.

The maximum future release facility is capped at 50% of the total facility given and is available for seven years from the plan’s commencement, after which the reserve will be re-evaluated. The minimum cash withdrawal from the future release facility is £5,000, and there are no additional admin fees for making these withdrawals.

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

Valuation Features

The Scottish Widows line of drawdown plans is presently offering a generous 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 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.

Footnotes

Scottish Widows Life plan updates are still in the works. We will give an update soon.

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.

Not what you're looking for?

Have a look at all the equity release schemes available on the market, with our easy to use table!

Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui

What people say

You are the best. You delivered what you mentioned you would that was much better than anybody else. I can not rate you highly enough!!
Brenden
Brenden
SovereignBoss client
I'd like to commend the excellent support we received from you guys in our recent equity release application, which proceeded faster than we could have hoped. Thank you so much.
Margaret
Margaret Doyle
SovereignBoss client
I have to say my experience with SovereignBoss was positive from start to finish. The level of customer service I received from John was simply outstanding, thank you!
janus
Janus Kern
SovereignBoss client

Editorial Note: This content has been independently collected by the SovereignBoss advisor 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.

Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui

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Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.
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Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Written by
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Financial Planning Reporter

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.
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Written by
Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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