1. Did Scottish Widows Offer Equity Release?

Yes. Scottish Widows offered equity release in partnership with LV=, which funded and administered the lifetime mortgage. Scottish Widows acted as the distributor, not the lender.

This means that although Scottish Widows no longer accepts new customers, existing plans for existing customers continue to be serviced and supported.

2. Why Did Scottish Widows Withdraw From Equity Release?

Scottish Widows' exit was a strategic decision, not a reflection of customer dissatisfaction.

2023: Early-stage strategy shift

Scottish Widows announced it would withdraw from the residential mortgage market to focus on later-life lending and lifetime mortgages. This signalled that its mortgage strategy was under review.

February 2025: Full withdrawal from lifetime mortgages

On 18 February 2025, Scottish Widows confirmed it was withdrawing its:

• Lifetime Mortgage – Lump Sum
• Lifetime Mortgage – Future Release

The final date for new applications was 27 February 2025.

The products were fully withdrawn on 28 February 2025.

Why did they withdraw?

The reasons include:

• Re-focusing on core financial products
• The end of their partnership-led lifetime mortgage model
• Increasing competition from specialist lenders
• Growing regulatory complexity in the equity release market
• A shift toward customers receiving whole-of-market advice rather than brand-specific distribution

3. What Existing Scottish Widows Equity Release Customers Should Do

Existing lifetime mortgage customers can be reassured that their plans remain fully active, protected and supported.

Here is everything you need to know:

Your protections remain unchanged

You still benefit from:

• The No Negative Equity Guarantee
• The right to remain in your home for life
• Full protections if your partner dies or enters long-term care

These safeguards remain intact, as they are part of the Equity Release Council standards.

You can still borrow more (if your plan includes a reserve)

If your plan included a drawdown or future release facility, you can request more funds in exactly the same way as before.

Contact number for existing customers: 0345 122 1607

This is the dedicated line for drawdown enquiries.

You can still move home

Existing customers may:

• Move property,
• Port (transfer) their plan to a new home (subject to criteria),
• Request additional borrowing where eligible.

Your plan continues to be serviced by LV=

Because LV= funded and administered Scottish Widows' lifetime mortgage, ongoing servicing remains unchanged.

This includes:

• Annual statements.
• Drawdown requests.
• Enquiries about moving home.
• Help with changes to your plan.

Considering borrowing more?

You can request additional borrowing from Scottish Widows/LV=, but you may also wish to compare your current rate with other lenders, as some offer lower interest rates or higher borrowing limits.

Whole-of-market advisers, such as Age Partnership, can:

• Request your existing plan details (with your permission),
• Compare your current interest rate with today's market,
• Check if enhanced (health-related) rates apply,
• Clarify whether switching lender may be beneficial.

This helps customers make an informed choice.

4. Alternatives to Scottish Widows Equity Release in 2025

Since Scottish Widows no longer offers new lifetime mortgages, consumers typically compare:

• Aviva
• More2Life
• Royal London
• Legal & General
• Standard Life Home Finance
• Canada Life
• Pure Retirement

Many of these lenders offer:

• Lower interest rates for some customers
• Higher maximum release amounts
• Enhanced rates for certain medical conditions
• Flexible drawdown features
• Optional voluntary repayments

5. Why Many People Use Whole-of-Market Advice

Because Scottish Widows has exited the market, consumers benefit most from whole-of-market equity release advice, which compares plans from multiple lenders.

Whole-market advisers can assess:

• Your home value.
• How much you can release.
• Interest rates across many lenders.
• Whether you qualify for enhanced rates.
• Drawdown vs lump-sum options.
• Early repayment charges.
• Alternative types of later-life lending.

Age Partnership is one of the UK's best-known whole-of-market equity release brokers, offering access to many major lenders including Aviva, More2Life and others.

(Provided for context: this is not advice.)

6. What to Look For When Choosing an Alternative Provider

A simple checklist:

• Interest rates
• Early repayment charges
• Drawdown or lump sum options
• Ability to make voluntary repayments (usually up to 10% per year)
• Property eligibility
• Maximum borrowing amount
• Enhanced rates (based on health)
• Impact on inheritance and means-tested benefits

7. Common Questions About Scottish Widows' Withdrawal

Can I take out a new Scottish Widows lifetime mortgage?

No: all products were withdrawn in February 2025.

Does the withdrawal affect my existing plan?

No: your plan remains fully active and protected.

Can I still borrow more?

Yes. If you have a reserve facility, call 0345 122 1607. You also have the option to borrow more via other lenders.

Can I move home?

Yes. You can port your existing plan, subject to criteria.

Who services my plan now?

LV= continues to service Scottish Widow Lifetime mortgages.

Can I switch lenders?

Yes. A whole-of-market adviser can compare whether switching provides better value.

8. Summary

Scottish Widows withdrew from the equity release market on 28 February 2025, ending new applications but keeping all existing customer protections and servicing firmly in place. Customers can still borrow more (where eligible), still move home, and still rely on full Equity Release Council safeguards.

For people exploring equity release today, whether for lump sums, drawdown, or comparing further borrowing, the most suitable route is often whole-of-market advice, where advisers such as Age Partnership compare plans across many lenders.

Scottish Widows' withdrawal does not affect the safety or validity of existing plans, and customers remain fully supported.

Sources

• Scottish Widows pulls mortgages for new customers – FT Adviser, 1 November 2023.
• Sesame Broker Communication – Scottish Widows Lifetime Mortgage Withdrawal, 18 February 2025.
• Scottish Widows Equity Release Plans (Review + Calculator) – Customer Servicing Document.