Scottish Widows Bank launches three year discount mortgage

The stepped discount offers a 1% discount in year one, 0.5% in year two and 0.25% in the final year. The bank’s Standard Variable Rate is currently 4.99%.

Gordon Bowden, Business Development Director with Scottish Widows Bank says:

"The discount offers an excellent headline rate as well as very good value over the life of the product, and reinforces Scottish Widows Bank’s approach to consistently offer good value and competitive products which meet the needs of our customers.

"The addition of the three year discount will give IFAs greater flexibility and more choice of interest rate options when recommending Scottish Widows Bank’s products. The discount also has the added benefit of being available with or without an offsetting arrangement."

There is a 2% redemption penalty built in, which only applies if the mortgage is redeemed in full or the client wishes to switch into another bank product. This means the flexibility of making regular or lump sum overpayments is still available.

The new 3 year discount will sit along side our existing 2 year discount and 2 and 5 year fixed rates.