The provider, which is part of Lloyds banking group, said it sent an official statement to all brokers with applications pending last Tuesday, 25 January.
The statement sent out last Tuesday said following a “strategic review” it withdrew its only equity release offering and said: “No applications for new business will be accepted after 5pm on 31 January 2011, however applications received before then will continue to be processed.”
“Existing customers will still be able to apply for further advances, subject to our usual lending criteria, “said Scottish Widows.
One broker caught out by the announcement, Howard Moon, said he was left with nowhere to put two applications today unaware the product had been shelved.
A Scottish Widows spokesperson, said: “If the IFA wasn’t told, I’m surprised, but if everything on the application is ready to go we would look at it. If he wasn’t aware of the deadline, I’m sure we would consider it.”
Simon Chalk, equity release planner, said this was also a surprise to him, but as Scottish Widows isn’t a SHIP member and didn’t offer a fixed interest rate he has never recommended the product.
“If you’d phoned me and told me Just Retirement, LV= or Bridgewater had pulled out of the market, I’d reach for a stiff drink. Scottish Widows were never a big player, so it’s not a serious issue.”
