The transfer of mortgages, savings accounts and loans to Lloyds Bank plc

Scottish Widows Bank mortgages, savings accounts and loans are currently provided by Scottish Widows Bank, which is part of Lloyds Banking Group. Scottish Widows Bank uses a separate banking licence to Lloyds Bank plc. On 1st October 2017, we plan to bring the products and services offered under these two licences together, to simplify our business so we can improve our services for customers.

What you will find on this page

Key Points: what the transfer means for you

  • This change means transferring your accounts held with Scottish Widows Bank to Lloyds Bank plc. You’ll continue to be a Scottish Widows Bank customer and your account services will stay the same. Nothing will change about the way your account is managed.
  • Your account numbers and account features will stay the same, and you can continue to use Internet Banking as usual.
  • There will be no changes to the way your personal information is used but after the transfer it will be held by Lloyds Bank plc instead of Scottish Widows Bank. You can see the Lloyds Bank plc Data Privacy Notice at lloydsbank.com/privacy
  • After the transfer, Lloyds Bank plc’s banking licence will apply to your accounts. When reading your account documents after the transfer, including your terms and conditions, please read references to Scottish Widows Bank as Lloyds Bank plc.
  • If you already hold £85,000 or more of eligible deposits in total with Lloyds Bank plc and Scottish Widows Bank (or £170,000 or more if you have a joint account), the transfer will affect your level of cover offered by The Financial Services Compensation Scheme (FSCS). There is more information about this in our Q&As below.

How the transfer will happen

On 12th September 2017 the transfer was approved at a hearing at the High Court in London under Part VII of the Financial Services and Markets Act 2000.

We plan to complete the transfer on 1st October 2017 and we will update this page again once it has happened.

Key dates through to 31st December 2017

July 2017 12th September 2017 1st October 2017 31st December 2017
We let all Scottish Widows Bank customers know that their accounts would transfer to Lloyds Bank plc The High Court approved the transfer Scottish Widows Bank accounts will transfer to Lloyds Bank plc If your FSCS cover is affected by the transfer of your accounts to Lloyds Bank plc, you can make any withdrawals, without penalty or notice if you tell us before this date

Where can I find out more about the transfer?

Full details, including the terms of the transfer, are set out in a document called the Scheme Document, which was approved by the High Court when it approved the transfer. You can download the full, legal Scheme Document or the summary Scheme Document.

Or, you can call 0345 604 2006, lines are open 8am to 6pm Monday to Friday (Wednesday from 10am).

Questions you may have if you have a mortgage, offset savings account or loan

Will I see any changes to my accounts as a result of the transfer?

Scottish Widows Bank mortgages, offset savings accounts and loans (and any related security) will transfer to Lloyds Bank plc. You’ll still be a Scottish Widows Bank customer but Lloyds Bank plc will become the provider of your accounts.

If you have a mortgage or loan, the way you make payments to your account will stay the same but after the transfer payments will be taken by Lloyds Bank plc instead of Scottish Widows Bank.

Can I still request historical statements?

You will continue to have access to the same information you have today.

I use Internet Banking to manage my account – will my log on details stay the same?

Yes, you can continue to log on using your current username, password and memorable information as you do today. The only changes to Internet Banking will be that references to Scottish Widows Bank as the provider will change to Lloyds Bank plc.

I use Telephone Banking to manage my mortgage or loan – will that change?

There will be no changes to the Telephone Banking service and you will continue to use the same details you use today when you need to speak to us.

Will the terms and conditions for my mortgage or loan stay the same after the transfer?

The only change to your terms and conditions will be to reflect that the provider of your accounts will be Lloyds Bank plc instead of Scottish Widows Bank. After the transfer you should read any references to ‘Company’, ‘we’, ‘us’, ‘our’ or ‘Scottish Widows Bank’ as ‘Lloyds Bank plc’.

I have a Scottish Widows Bank savings account – will this be included in the transfer?

Yes – all Scottish Widows Bank savings accounts will be included in the transfer.

Your deposit protection under the Financial Services Compensation Scheme could be affected as a result of the transfer. It’s important that you read the savings Q&As if you have an offset savings account linked to your mortgage.

If you have any other savings accounts that aren’t linked to your mortgage, we’ll write to you separately about these.

Will other debts I already have with Lloyds Bank be secured by my Scottish Widows Bank mortgage after the transfer?

After the transfer, we will make sure that your mortgage is not used as security for any debts you had with Lloyds Bank plc before the transfer.

If your mortgage is used as security for any other debts you currently have with Scottish Widows Bank, this will continue to apply after the transfer.

After the transfer, could my Scottish Widows Bank mortgage be used as security for my Lloyds Bank mortgage or loan?

After the transfer, we will make sure that any mortgage you had with Scottish Widows Bank before the transfer is not used as security for any existing Lloyds Bank plc mortgage or loan you have, and vice versa.

After the transfer, will you apply rights of set-off between money I have deposited with Scottish Widows Bank and debts I have with Lloyds Bank plc, or vice versa?

Rights of set-off allow a bank to use money you have deposited in current or savings accounts, against a debt you have with the same bank, such as a loan, mortgage, overdraft or credit card, if you fall behind on your debt repayments.

After the transfer, and for at least one year after the transfer date, we will only apply rights of set-off within the brand under which your accounts are held. This means that if you fall behind on debt repayments with Lloyds Bank plc, we will not use money you have deposited with Scottish Widows Bank to reduce or repay your debt, and vice versa.

If I fall behind on my mortgage or loan payments after the transfer, will this affect other credit arrangements I have with Lloyds Bank plc?

When you take out a new loan or credit agreement, sometimes the terms will mention that if you fall behind on repayments for other debts you have with the same lender, the loan you are taking out will also become repayable, even if your payments on it are up to date at the time.

After the transfer, we will make sure that your Scottish Widows Bank mortgage or loan will not become repayable if you fall behind with your payments for any debts you had with Lloyds Bank plc before the transfer.

We’ll also make sure that any debts you had with Lloyds Bank plc before the transfer do not become repayable if you fall behind with any mortgage or loan you currently have with Scottish Widows Bank.

After the transfer, will you have legal charge over the properties relating to all of my Scottish Widows Bank and Lloyds Bank plc mortgages?

Lenders often apply a standard condition when a customer has more than one mortgage, which allows them to maintain legal charge over all properties until all of the mortgages have been repaid. This protects lenders against a mortgage that is paid and up to date from being moved somewhere else, while another mortgage that is in arrears is left with the lender.

We will not apply the condition to any Scottish Widows Bank or Lloyds Bank plc mortgages you had before the transfer, and vice versa. The condition will continue to apply to any Scottish Widows Bank mortgages you currently have.

I have a guarantor on my mortgage or loan, or I am a guarantor for another mortgage or loan, how will the ‎guarantee be affected by the transfer?

After the transfer Lloyds Bank plc will be your lender and all references to Scottish Widows Bank in the guarantee will become Lloyds Bank plc. This means that any guarantor obligations will be owed to Lloyds Bank plc and not Scottish Widows Bank. The other terms and conditions in the guarantee will remain the same.

The terms of my mortgage allow me to transfer it to another property, will this change after the transfer?

If the terms of your mortgage allow you to transfer it to another property, this will continue after the transfer.

Questions you may have if you have savings accounts, including ISAs

Will the way my account works and the way I bank stay the same?

Yes. You’ll still be a Scottish Widows Bank customer and you can carry on banking as you do today. Your account numbers will also stay the same.

Will my Direct Debits continue to operate as they do now?

Yes, these will carry on as they do today.

Can I still request historical statements?

You will continue to have access to the same information you do today.

I use Internet Banking – will my log on details stay the same?

Yes, you can continue to log on using your current username, password and memorable information as you do today. The only changes to Internet Banking will be that references to Scottish Widows Bank as the provider of your account will change to Lloyds Bank plc.

I use Telephone Banking will that change?

There will be no changes to the Telephone Banking service and you will continue to use the same details you use today when you need to speak to us.

Will the terms and conditions for my savings account or ISA stay the same after the transfer?

The only change to your terms and conditions will be to reflect that the provider of your account will be Lloyds Bank plc instead of Scottish Widows Bank. After the transfer you should read any references to ‘Company’, ‘we’, ‘us’, ‘our’ or ‘Scottish Widows Bank’ as Lloyds Bank plc.

I have a Scottish Widows Bank mortgage or loan – will this be included in the transfer?

Yes – all Scottish Widows Bank mortgages and loans (and any related security) will be included in the transfer. Offset savings accounts linked to mortgages will also be included.

We’ll write to you separately if you have a mortgage, offset savings account or loan with us.

After the transfer, will you apply rights of set-off between money I have deposited with Scottish Widows Bank and debts I have with Lloyds Bank, or vice versa?

Rights of set-off allow a bank to use money you have deposited in current or savings accounts, against a debt you have with the same bank, such as a loan, mortgage, overdraft or credit card, if you fall behind on your debt repayments.

After the transfer, and for at least one year after the transfer date, we will only apply rights of set-off within the brand under which your accounts are held. This means that if you fall behind on debt repayments to Lloyds Bank plc, we will not use money you have deposited with Scottish Widows Bank to reduce or repay your debt, and vice versa.

What happens if I have an ISA?

After the transfer, your ISA will be provided by Lloyds Bank plc. If you don’t want your ISA to be transferred to Lloyds Bank plc, you can transfer it to another ISA provider. You must tell us to transfer your ISA to the new ISA provider at least 15 working days prior to the transfer date of 1st October 2017. To transfer your ISA to another provider you’ll need to contact your new ISA provider for details on how to complete the transfer.

Deposit protection for savings and current accounts under the Financial Services Compensation Scheme

What is the Financial Services Compensation Scheme?

Eligible deposits with Scottish Widows Bank and Lloyds Bank plc are protected by the Financial Services Compensation Scheme (FSCS), the UK's deposit guarantee scheme. Eligible deposits include money in savings accounts, cash ISAs and current accounts that are regulated in the UK.

The FSCS will pay compensation to depositors if a bank is unable to meet its financial obligations. From 30th January 2017 eligible deposits are protected up to a total of £85,000 for each bank you hold money in. Any deposits that are above the £85,000 limit are not covered. For joint accounts each account holder is eligible to claim a maximum of £85,000, making a total of £170,000.

The £85,000 limit relates to the total value of combined balances for all eligible deposits with a bank including a share of any joint account. It does not relate to each separate account or deposit. You can find more information on the FSCS website at www.fscs.org.uk

How your FSCS cover for eligible deposits could be affected if you are already a client of Lloyds Bank plc

If you have money in eligible deposits with Scottish Widows Bank and also with Lloyds Bank plc, you would currently have FSCS protection of up to £85,000 (or £170,000 if you have a joint account) for each bank, making the total protection cover of your combined deposits up to £170,000 (or £340,000 for joint accounts).

Following the transfer the deposits you currently hold in Scottish Widows Bank will be held in Lloyds Bank plc so you will only be covered for up to £85,000 (or £170,000 if you have a joint account) and not £170,000 (or £340,000 for joint accounts), which applies today. This is because your deposits will be held in one bank instead of two.

If your deposits with Lloyds Bank plc as a result of the transfer are more than £85,000 (or £170,000 if you have a joint account) you will be able to withdraw enough money, without any penalty or notice, to reduce the total value of your deposits to £85,000 (or £170,000 if you have a joint account) or to the balance you had with Lloyds Bank plc before the transfer, whichever is greater. This option will be available from 1st October 2017 until 31st December 2017.

If you would like to speak to someone about this, please call 0345 604 2006, lines are open 8am to 6pm Monday to Friday (Wednesday from 10am).

You could also be affected if you are a client of Lloyds Bank Private Banking Limited

Lloyds Bank Private Banking Limited also plans to transfer its accounts to Lloyds Bank plc at the same time as Scottish Widows Bank. If you are a client of Lloyds Bank Private Banking Limited, they will write to you separately about the deposits you hold with them.

Does the transfer affect my right to make a complaint?

After the transfer, if you need to make a complaint you can contact us using the same details you use today.

The transfer will not affect any rights you may have as a customer to complain to the Financial Ombudsman Service. You can find out more at www.financial-ombudsman.org.uk