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Scottish Widows LS3 Details (Voluntary Payment)

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Lifetime Mortgage LS3

  • Type Fixed
  • Rate 7.00%
  • APR 7.20%
  • Cashback
  • Free Valuation
  • Free Application
  • 10%pa Voluntary Payment Option
  • Protected Capital Guarantee
  • 10-Yr Fixed Early Repayment Charge


Scottish Widows is a household brand that are recognised as one of the strongest life and pensions companies in the UK. Originally started in 1815 as a mutual, it now looks after 6 million UK customers helping them 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 In addition, Scottish Widows took over the running of the popular Halifax Retirement Home Plan, which was withdrawn by Halifax in August 2011.

Scottish Widows re-entered the equity release market in 2020 with a select number of brokers and a range of lifetime mortgages based upon the loan-to-value requirement of the homeowner. Offering both drawdown and lump sum options, these plans will evolve as Scottish Widows gain greater experience of the new equity release market.


The Scottish Widows Lifetime Mortgage LS3 with voluntary payments is available to homeowners with a minimum property valuation of £100,000, (£150,000 for ex-council, ex-local authority & ex-MOD properties). The property must be a main residence and be located within England, Wales, Mainland Scotland and have a maximum property value of £2,000,000.

This Scottish Widows equity release plan is available upto a maximum of two applicants on a single & joint life basis. The minimum age at inception is 55 years, with a maximum age at entry of 85 (of the youngest).

The minimum loan available is £30,000, with a maximum release of £600,000. For loans greater than £750,000 bespoke quotations maybe available, hence contact Equity Release Supermarket team on Freephone 0800 088 5898 for your bespoke quotation. for your Scottish Widows personalised Key Facts Illustration.


The Scottish Widows Lifetime Mortgage LS3 scheme is geared towards providing an initial cash lump sum attracting a fixed lifetime interest rate and access to a future cash release facility in the future, if required. Any future cash release is available where the maximum lending facility is not required upfront. The unused cash element can therefore be pinpointed as the future release facility.

The maximum future release facility is capped at 50% of the overall facility offered and is available for seven years from inception of the plan, at which time the reserve will be re-assessed. The minimum amount of cash that can be taken from the future release facility is £5,000 and they incur no additional admin fees to make these withdrawals.

An inheritance protection feature is provided by this Scottish Widows drawdown plan - known as the Protected Capital Guarantee feature. At no extra cost to the homeowner, Scottish Widows can ring fence and protect a proportion of the future sale value of the property, based on the amount initially withdrawn.

The Scottish Widows range of lifetime mortgage plans have defined 10 year early repayment charges (ERC’s), which means a fixed percentage based on the original amount borrowed would be charged within a stated period. These ERC’s start at 10% in year 1, reducing by 1% per annum to year 10, after which no penalty is levied.

There is currently a generous free unlimited valuation on the Scottish Widows range of drawdown plans. In addition, there is no application fee and £600 cashback upon completion of the lifetime mortgage - enabling a fee free entry upon application.

All versions of the Scottish Widows Lifetime Mortgage come with the industry recognised 'No Negative Equity Guarantee'. Scottish Widows are members of the Equity Release Council, therefore ensure that any beneficiaries cannot be burdened by any debt over and above the final value of the property.


Although the Scottish Widows Lifetime Mortgage is essentially designed as a roll-up lifetime mortgage, the plan has a flexible 10% Voluntary Payment Option included. This allows the homeowner to make one ad-hoc repayment of 10% of the original amount borrowed each year with NO penalty. Over this 10% limit, an early repayment charge would be levied within the first 10 years.

Homeowners can therefore choose their level of contribution (if any) towards the interest charged by Scottish Widows, with no affordability or proof of income requirement, both pre or post retirement age.

Making Voluntary Payments helps manage the future balance of the plan, enabling management of the lifetime mortgage on either an interest only or even capital and repayment basis, or just ad-hoc whenever the need arises. This can be important to those looking to ensure their beneficiaries acquire some form of inheritance.

To obtain further information or to request a quotation on the Scottish Widows Voluntary Payment LS3 Lifetime Mortgage, please contact the Equity Release Supermarket team on Freephone 0800 088 5898 today.

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