Following the launch of the Scottish Widows Equity Release pilot scheme, David Forsdyke, Head of our Later Life Finance service, comments on our partnership with the provider.

In the summer of 2020 Scottish Widows stepped back into the equity release market by launching their lifetime mortgage product through a limited number of mainstream intermediaries. I'm delighted to say that 12 months later they have taken the next step in this pilot scheme, this time into the High Net Worth market, by entering into a partnership with Knight Frank Finance.

We’ve been talking to Scottish Widows since they launched last year, sharing our insights into how wealthier homeowners are using equity release. The company took a keen interest and we are delighted we can now offer their Lifetime Mortgage product to our clients.

A lifetime mortgage is a loan secured against your property that allows you to free up some of the equity you have in your home while you still live there. The loan has an indefinite term, which means you still own your home. Interest can be paid each month, or on an ad-hoc basis, or be allowed to "roll up" on top of the loan, so that you don't have to make any monthly payments. The loan and any interest rolled up must both be repaid when the youngest borrower passes away or moves into permanent care. Repayment will usually come from the proceeds of the sale of your property, with any surplus being returned to your estate.

Lifetime Mortgages are becoming increasingly popular among our clients. They are using funds for a variety of reasons, including redistributing their wealth down through the generations, or restructuring their existing debts. Home improvements are also a popular reason to release equity.

If you want to know more about the Scottish Widows product, or have questions about Equity Release, please contact David and his Later Life Finance team at later.life@knightfrankfinance.com or call 01483 947764.