Canada Life was incorporated with MGM Advantage re-branding in 2015, after it purchased former equity release lender – Stonehaven Equity Release and Retirement Advantage.
Canada Life’s lifetime mortgage uk plans offer a ‘DIY’ approach by defining your own style of equity release. With a range of products including lump sum schemes, interest only lifetime mortgages and voluntary payment plans, homeowners can build extra options required such as cashbacks or drawdown reserves which all affect the eventual equity release deal they receive. All these features along with the shortest 8 year fixed early repayment charge in the market makes Canada Life a serious lender in the equity release market.
Canada Life adhere to the regulations and code of conduct set out by both the Financial Conduct Authority and the Equity Release Council.
Interest Select Lite Option
This is a type of interest only lifetime mortgage, offers affordable repayment options. Borrowers will need to pay between a minimum of 50% of the interest charged each month, upto 100% of the same. Choosing to pay 100% will maintain a level mortgage balance throughout the life of the plan.
To meet industry demands the Interest Select Gold plan comes with an option to roll-over the mortgage should a homeowner be unable to maintain monthly interest repayments in the future.
Qualifications and Other Criteria
Property value and age are the eligibility criteria the Interest Select Gold Plan is based on. The age in order to determine life expectancy and the property value to determine the equity in the home are used to calculate a loan to value percentage. This percentage is not the full value of the home, but a portion of it so the loan is in keeping with the no negative equity requirement. The loan amount cannot exceed 100% of the home value when interest accrues because providers are not allowed to seize other property beyond the home to recoup the capital sum lent. The minimum age of the youngest homeowner is 55. The property value must be at least £70,000 to qualify.
The Interest Select Gold Plan comes with a voluntary repayment option while also maintaining its interest only status. As stated above a minimum payment can be made that is lower than the actual accrued interest for the month. This allows the homeowner to repay what is comfortable for them. For the non-voluntary repayment option there will be early repayment charges in the first 5 years of 5%. The next 3 years the early repayment charge is just 3%.
Canada Life’s Interest Select plan comes with FREE valuation and an option for £1,000 cashback. It is an interest only lifetime mortgage with inheritance protection as part of the incentive package.