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Scottish Widows cuts rates on £1m+ mortgages

by: Heather Greig-Smith
  • 23/02/2017
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Scottish Widows cuts rates on £1m+ mortgages
Scottish Widows Bank has cut its rates for loans over £1m as it seeks to increase its levels of high net worth business.

The lender introduced its large loan range in 2016 – as part of its strategy of targeting professionals and high net worth individuals. In the first six weeks of 2017 the range has attracted more than £40m of business.

Today it has reduced its rates by 20 bps. A two-year fixed rate professional mortgage is now 1.64% for loans of £1m-£3m up to 60% loan to value (LTV), with a £1,999 fee. The rate rises to 1.84% for up to 75% LTV and 2.54% up to 80% LTV.

On its flexible mortgage, which is available to employed and self-employed borrowers, the rates are 10 basis points higher. Both types of mortgage have offset facilities and are available for new purchases and remortgages.

Product fees apply for each £3m of borrowing (so for loans of £3m to £5,999,999 two product fees will be payable and for loans of £6m to £8,999,999, three product fees will be payable).

Martin Fleming (pictured), managing director of Scottish Widows Bank, said: “Our £1m+ product range attracted more than £40m of business in the first six weeks of this year alone, and the combination of competitive rates, flexibility of offset and great service have helped us carve out success in this area. These new changes will enable us to continue building on that strength and grow completions significantly in 2017.”

He added: “We recently introduced our lowest ever remortgage rates with the built-in flexibility of offsetting to help brokers save money for clients. Making our large loan offering more accessible with a lower rate is part of our wider commitment to the market.”

In November, Fleming told Mortgage Solutions that the bank was honing its strategy to differentiate the lender from other Lloyds Banking Group brands, so for example, training its underwriters to understand complex income streams received by doctors.

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