Scottish Widows Bank offering existing customers remortgage rates

by Aaron Strutt

Oct 01 2015

Scottish Widows Bank is offering a range of product transfer (remortgage rates) enabling existing customers to simply lock into another fixed mortgage.  

If you are looking to secure another two, three or five-year fixed rate or move from a variable rate, Trinity Financial can submit applications up to three months before your rate finishes.

Scottish Widows’ policy states that customers will need to apply through an adviser if the mortgage is over £350,000. This rule means many existing borrowers will not be able to call or apply online directly. 

The bank no longer provides existing customers will advise and as the products have a range of fees, responsibility has been passed to mortgage advisers to submit many of the applications. 

Mortgage rates

The lender offers various rates for Professional and Flexible customers. It works out the pay rate depending on the amount of equity in the property and the size of the mortgage.

There are three different loan groups with individual rates. From £0 to £200,000. Between £200,001 to £340,999 and over £349,999.

Aaron Strutt, product manager at Trinity Financial, says: “Most lenders will not allow customers to switch their rates three months before it expires and this is an attractive option.

“However, it is important to assess the market to ensure you are getting the best deal. There is a huge amount of competition to attract remortgage customers at the moment and rates can vary significantly.”

Qualifying for product transfers

If you are applying for a new rate and you are not changing the mortgage amount or term, the application should be agreed relatively quickly.

However, if you have an interest-only mortgage the bank will ask for proof of your interest-only repayment vehicle. It will then assess whether it meets the new qualification rules.

The bank no longer accepts the ‘sale of the property' as a repayment vehicle.

Existing interest-only mortgages

If you do not have a large enough pension pot or buy-to-let properties in the background, you may be asked to switch to full capital repayment. Although, a good broker will discuss this with one of their underwriters and may be able to argue your case.

Over the last three months, a host of mortgage lenders have come back into the interest-only market, so if you do not qualify with Scottish Widows another high street lender may be able to help.

Letter of authorisation

For Trinity’s brokers to submit an application to Scottish Widows and act on your behalf, they will require a signed letter of authorisation.

Call Trinity on 020 7016 0790 to secure a Scottish Widows Bank product transfer rate