Switch to a new rate

These are the steps you'll need to take if you're thinking about switching to a new rate, including what to expect and what you'll need to apply. We've also covered the answers to the most commonly asked questions about switching on the switching FAQs below.

1. Check the rate you're currently on

• If you're currently tied into a fixed rate you may have to pay an Early Repayment Charge (ERC) to switch to a new rate.
• If there's less than four months to go on your existing fixed rate we'll waive any ERC if you switch to a new rate.
• If you're on a variable rate, including our Standard Variable Rate, you can switch to a new fixed rate without any ERC.
• If you do have an ERC consider whether you want to pay to end your current deal early. Any ERC would need to be paid up front.
• Check the current rates available to switch to and decide if you still want to switch. You may prefer to stay on your existing rate.

2. Before you apply

• Choose how to apply - online or by phone.
• If there's anyone else named on the mortgage they'll need to agree to the switch and provide some information about themselves.
• Make sure you've got any useful documents to hand, such as payslips, bank statements and details of any repayment plans (if you've got an Interest Only mortgage).

3. When you apply

• If we're providing you with advice we'll need to ask you about your needs and circumstances, we can then recommend the most suitable option for you.
• If you apply online you won't receive any advice from us. We'll offer you options based on the current estimated Loan to Value of your property and you'll need to make your own choice.
• You may need to provide details of any other financial commitments, and we might use a credit reference agency to make sure you can afford the new monthly payments.
• If any part of your mortgage is on Interest Only we'll need to check you have a suitable repayment plan in place. You are responsible for making sure you can repay any Interest Only borrowing at the end of your mortgage term, and you'll need to provide evidence of this.

4. Confirming your switch

• Once you've submitted your application we'll send you some important documents.
• You'll need to log on to confirm that you want to go ahead with the switch - your documents will explain how to do that.
• It's important you take time to carefully read through these documents and decide the switch is right for you.
• If there's anyone else named on the mortgage they'll need to agree to the switch.

5. Completing the switch

• We'll send you a letter confirming when your new rate will take effect, and when we'll start collecting your new monthly payment.
• The new rate will normally take effect from the first of the month following your offer, but could take longer if you've completed your application towards the end of the month. We'll keep you informed exactly when the switch will take place.

Interest Rates effective from Monday 11th November 2024.

• Rates available up to 120% Loan to Value
• Offset is available with all products
• Early repayment charges apply, refer to the ‘Product Transfer Early Repayment Charges’ table for full details.
• Other products may be available through a mortgage adviser.

We reserve the right to change our product rates at any time.

2 Year Fixed Rates for mortgage balances up to £1,000,000

With a fixed rate mortgage, up to 10% of the loan balance may be repaid once a year without an Early Repayment Charge. Where Early Repayment Charges apply, the following table shows our current charging structure for the different products available.

5 Year Fixed Rates for mortgage balances up to £1,000,000

Early Repayment Charge

*For fixed rate products the 'chargeable balance' is any amount repaid that exceeds 10% of the outstanding mortgage balance at the time of the repayment, or the full amount being repaid if a repayment has already been made in the same year.

Representative example

A mortgage of £315,000 payable over 25 years, initially on a fixed rate for 2 years at 6.25% and then on our variable rate of 8.24% for the remaining 23 years, would require 24 monthly payments of £2,077.96 followed by 276 monthly payments of £2,481.51.

The total amount payable would be £734,767.80 made up of the loan amount, plus interest of £419,767.80.

The overall cost for comparison is 8.1% APRC representative.

This is an illustration of a typical mortgage and its total cost.

This option is right for you if:

• You don't need to talk to a mortgage adviser for advice
• Your current rate is expiring in less than four months
• You don't want to make any other changes to your mortgage
• Your current loan amount is less than £1,000,000
• No part of your mortgage is Interest Only

To apply online you'll need your 11 digit mortgage account number to hand. You'll be able to view all the interest rates available, and you'll need to decide which one is right for you.

Apply online now or complete your switch application

This option is right for you if:

• You need to talk to a mortgage adviser for advice
• Any part of your mortgage is Interest Only
• You want to make any other changes to your mortgage
• Your current loan amount is more than £1,000,000
• You currently have a Guarantor or Graduate mortgage

If you already have a mortgage adviser you should contact them.

If you have a Retirement Home Plan or Lifetime Mortgage call our customer service team on 0345 845 0829.

We’ve put together the answers to some of the most commonly asked questions about switching to a new rate. If you have a question that we haven’t answered here, please call us on 0345 845 8555 (option two). Lines are open 8am to 6pm Monday to Friday. Alternatively, you can also send an email to our customer service team if you have a general enquiry.
 

WHAT SHOULD I DO IF MY CURRENT RATE IS COMING TO AN END?

If your current Scottish Widows Bank interest rate is coming to the end of a fixed or variable rate period, and you don’t want to switch to a new rate, you don’t need to do anything. If you don’t apply to switch to a new rate you’ll automatically go onto our Standard Variable Rate.
 

WHEN CAN I SWITCH TO A NEW RATE?

You can switch to a new rate if:

• You’re currently on our Standard Variable Rate
• You currently have less than four months to go on your existing fixed or variable rate
• You want to switch from a variable rate to a fixed rate

You can still apply to switch but you might have to pay an Early Repayment Charge if:

• You’ve got more than four months left on your existing fixed rate
• You want to switch from a variable rate to another variable rate

You can’t switch if you’ve got a Buy to Let or Retirement Home Plan mortgage, or if your mortgage is in arrears.
 

HOW DO I DECIDE WHICH DEAL TO CHOOSE?

We’ll offer you interest rates based on the amount outstanding on your mortgage in relation to how much we think your property is worth (your Loan to Value).

If you want to receive advice our mortgages are serviced by independent mortgage advisers. If you already have a mortgage adviser you should contact them.

If you’re happy to make your own choice and don’t need advice, you can apply online.
 

HOW DO I DECIDE HOW TO APPLY?

Apply online if:

• You don’t need to talk to a mortgage adviser for advice
• Your current rate is expiring in less than four months
• You don’t want to make any other changes to your mortgage
• Your current loan amount is less than £1,000,000
• No part of your mortgage is Interest Only

Apply using a mortgage adviser if:

• You need to talk to a mortgage adviser for advice
• Any part of your mortgage is Interest Only
• You want to make any other changes to your mortgage
• You currently have a Guarantor or Graduate mortgage

If you have a Retirement Home Plan or Lifetime Mortgage call our customer service team on 0345 845 0829.

WHAT DO I NEED TO APPLY ONLINE?

You just need your 11 digit mortgage account number and details of your current income.

WHAT HAPPENS IF I CHANGE MY MIND?

You should contact us immediately on 0345 845 0829.

WILL I HAVE TO PAY EARLY REPAYMENT CHARGES?

You might have to pay an Early Repayment Charge if:

• You’ve got more than four months left on your existing fixed rate
• You want to switch from a variable rate to another variable rate

ARE THERE ANY OTHER CHARGES OR FEES?

There are no legal fees, and no valuation fees if you’re happy with our indexed valuation. There may be a product fee depending on the rate you’re applying for, you can find this information on the interest rates pages. If there is a product fee you can pay these up front or have them added to your mortgage. Any fees added to your mortgage will be charged interest.

CAN I MAKE ANY OTHER CHANGES TO MY MORTGAGE AT THE SAME TIME?

If you want to make any other changes to your mortgage, such as the term, repayment type or amount you’ve borrowed, you’ll need to speak to an independent mortgage adviser. See the How to apply section above to find an adviser if you don’t already have one.