Scottish Widows has announced a 5 per cent return on its with-profits fund over the last 12 months.
It says a £50 a month mortgage over 25 years will pay out £38,136 – £4,825 above target.
Widows says it will retain last year’s regular bonus rates on its conventional with-profits policies and unitised with-profits policies, as set at July 1, 2007.
Its final bonus rates, altered from January 1, will vary from those set last July, depending on the individual investment performance of each policy.
Scottish Widows with-profits actuary Kevin Doerr says: “With-profits policies have performed well in a year of volatile investment markets. This reflects the diversified underlying asset mix and smoothing, which is an important feature of with-profits policies.”