Scottish Widows Lifetime Mortgage LS5
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Scottish Widows Lifetime Mortgage LS5 Review
Lifetime Mortgage LS5 Key Details
- Free Valuation
- Free Application
- 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 LS5, 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.
What’s Equity Release?
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.
Learn More: What’s Equity Release?
How Does Equity Release Work?
Equity release is available for individuals or couples over the age of 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: How Does Equity Release Work?
We’ve summed up the most important information about the topic in this quick video.
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Who Are Scottish Widows?
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 LS5 is accessible to householders with a property worth of at least £100000 (£150,000 for ex-council, ex-local authority, and ex-MOD houses).
Minimum Property Valuation
The Scottish Widows Lifetime Mortgage LS5 is available to homeowners with a minimum property valuation of £100000, (£150,000 for ex-council, ex-local authority & ex-MOD properties).
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).
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.
The Scottish Widows Lifetime Mortgage LS5 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.
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
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.
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.
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.
The Scottish Widows collection of lump sum plans is presently offering a generous free unlimited valuation, and there is no application cost.
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
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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. Learn more about our editorial guidelines.
HOW MUCH EQUITY CAN YOU RELEASE?
Most people are using equity release as a means of retaining the use of their house while also obtaining a lump sum or a steady stream of income. Get matched with an expert and check your eligibility for equity release options.
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