Scottish Widows Bank is set to increase mortgage lending this year having overhauled its operating model.
It has reduced rates by up to 0.5 per cent and launched a number of new products including a range of two-year fee free fixed and tracker rate deals.
Scottish Widows Bank distributes its mortgages through the broker market and specialises in niche products, such as professional and offset mortgages.
Professional mortgages are designed for professionals, such as doctors, dentists, solicitors, accountants and teachers, among others.
An offset mortgage allows you to combine your mortgage and savings and there are flexible features such as overpayments and underpayments.
Mike Jones, current director of intermediaries at Lloyds Banking Group, has taken on the additional responsibilities as managing director of Scottish Widows Bank.
Jones said: “The mortgage landscape may have changed over the last few years, but there is still a requirement for niche products, such as professional and offset mortgages. There is a segment of the home buying public that have specific requirements from their mortgage and we plan to offer competitive rates in this segment.”
Products
Rates start at 2.35 per cent for a two-year fix at 60 per cent loan-to-value with a £1,499 booking fee. The range moves up to 5.59 per cent for 90 per cent LTV with no booking fee.
Five-year fixes start at 3.19 per cent on 60 per cent LTV moving up to 5.39 per cent for a 90 per cent LTV product. All five-year fixes have a £999 booking fee.
There are also a range of two-year variable rate products starting at 1.99 per cent above base rate, so the current rate is 2.49 per cent.
Some products also have an interest-only option up to 75 per cent LTV.
Jones added: “We have a compelling product range available to brokers and their customers. Whilst allowing brokers to retain ownership of the case; we work with them from application stage through to settlement by providing them with individual case management to ensure that their customer has the best mortgage suited to their needs.”
About Scottish Widows Bank
Scottish Widows is a life, pension and investment company founded in 1812 and was Scotland’s first mutual life office.
Scottish Widows Bank was formed in 1995 and entered the mortgage market in 1997. It was one of the first lenders to launch a flexible and professional mortgage range in 1998. Since 2010, now part of Lloyds Banking Group, Scottish Widows Bank has been the group’s niche mortgage provider.
