As a result, from 17 November it will no longer accept purchase or remortgage applications from new customers. The lender said that existing mortgage customers will continue to receive a full range of regular mortgage services, while its lifetime mortgage range is unchanged by the move.
A spokesperson for Scottish Widows said that the bank’s business has naturally become more focused on lifetime mortgages, with other borrowing needs served by other brands within the Lloyds Banking Group.
They added: “This move reflects and cements that position in the market.”
Nicholas Mendes, mortgage technical manager at John Charcol, said that he was surprised by the news.
“With little forward notice or warning, to hear Scottish Widows has decided to exit the market is certainly unexpected. The lender was one of few to offer offset products, but also their flexible criteria for certain clients will be missed,” he added.
