Scottish Widows Bank will pull out of the house purchase and remortgage markets to focus on equity release loans later this month.
The lender, which is part of the Lloyds Banking Group, says that from 17 November it “will no longer accept purchase or remortgage applications for new customers”.
It adds that any purchase or remortgage applications submitted up to 16 November “will be able to proceed to offer and completion as normal”.
The firm says the change is part of a move to “simplify our mortgage proposition” across the wider banking group’s brands.
Scottish Widows adds: “For existing mortgage customers, we will continue to provide a full range of mortgage services including porting, which will continue to be serviced via mortgage intermediaries, as we do today.”
It adds that its lifetime mortgage business remains unchanged, “and new business applications for these can be submitted as normal”.
John Charcol mortgage technical manager Nicholas Mendes says: “There is a slight shock to this latest announcement for Scottish Widows to exit the market and solely focus on the lifetime mortgage market.
“With little forward notice or warning, to hear Scottish widows have decided to exit the market, is certainly unexpected.
“The lender was one of few to offer an offset product, but also its flexible criteria for certain clients will be missed.”
The firms said that LV= Lump Sum Lifestyle and Drawdown Lifestyle products would come to market on 7 November, adding that the deals “offer added flexibility for customers considering equity release as a way of accessing capital to help support their financial plans”.
Scottish Widows managing director of retirement and longstanding Emma Watkins said the tie-up with LV= supported “the growth of our annuities business.”
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