Canada Life - Lifestyle Gold
  • Retirement Advantage - Lifestyle Gold Logo
  • Rate: 4.39%
    APR: 4.60%
    Incentive: Yes
    Offers: Free Valuation | Inheritance Guarantee Option | Fixed Early Repayment Charges

Background

Following the purchase of Stonehaven Equity Release, MGM Advantage formed Retirement Advantage in 2015. Despite the change in branding, the products remain the same and maintain the same level of quality. Retirement advantage offers a wide range of lifetime mortgage and equity release products, many of which can be tailored to a consumer’s individual needs.
The products offered in Retirement Advantage’s portfolio include voluntary repayment plans, lump sum, and interest only lifetime mortgages.

Criteria

The property values that are eligible with this product range from £70,000 all the way up to a generous £6 million. With the Lifestyle Gold products, borrowers are able to secure a loan between the range of £10,000 and £750,000. For loans greater than £750,000, bespoke quotations are still available, hence please contact the Equity Release team on 0800 678 5159 for your personalised Retirement Advantage Interest Select Gold Key Facts Illustration.

Applicants can be between the ages of 60 and 90 to take advantage of the Lifestyle Gold product. In order for properties to be eligible for the product, they must be located in Wales, Scotland or England. With the Lifestyle Gold product, the LTV percentage starts at 21% at age 60 and ends at 41% for ages 80-90.

Features

The Lifestyle Gold from Retirement Advantage is essentially a lifetime mortgage product that provides the borrower with a one-time cash payment. There are no future payments that are required and the interest is simply added to the loan every month for the lifetime of the loan. The Lifestyle Gold lifetime mortgage plan differs from its Lifestyle Lite counterpart, as it offers a high maximum equity release lump sum. Therefore, choice will be determined by the size of the loan required.

If borrowers do want to pay off their loan prematurely, the early repayment charge is fixed for the first 8 years following the completion of the loan. That fixed amount also applies to any additional borrowing following the initial loan as well as any withdrawals from the cash reserve facility. For years 0-5, the early repayment charge is fixed at 5%. For years 6-8, it is fixed at 3%.

Borrowers are able to take advantage of an inheritance guarantee at no charge to them and the Lifestyle Gold option also comes with a No Negative Equity guarantee from Retirement Advantage. So, even if the eventual sale of the property does not fully cover the outstanding loan balance, there will be no debt owed after the home is sold. Both of these features make the product particularly attractive to those homeowners who hope to leave behind an inheritance to loved ones.

There is also additional borrowing available in the future with the Lifestyle Gold, pending eligibility at the time of the request. The minimum amount for additional borrowing is £4,000. This additional borrowing is free from a completion fee but borrowers may need to pay a valuation fee or financial advice fee.

A cash reserve facility is available with the Lifestyle Gold product and if the borrower wants to take advantage of it, they can expect an interest rate increase in the amount of 0.2%. The minimum withdrawal amount for this is £2,000 and the maximum is whatever is remaining in the cash reserve facility. Withdrawals from the facility can be made at any time and that amount is fixed at the outset which means that it will not change, even despite changes in age or property value. There is no charge associated with the action of withdrawing funds from the cash reserve facility.

Suitability

This product works well for many borrowers. It is particularly suitable for those borrowers who want the freedom associated with getting a cash lump sum up front, but who also do not want to make any interest payments. This could also be suitable for those borrowers who simply cannot afford to make monthly payments or who do not have fixed incomes and therefore cannot prove affordability. It allows for money up front without the hassle of maintaining ongoing payments.

The Lifestyle Gold product is also ideal for those who want a low interest, but a higher loan-to-value than the Lite version. Lastly, with the safeguards offered by the No Negative Equity guarantee and the Inheritance Guarantee, the Lifestyle Gold is also appropriate for borrowers who want to leave behind a reliable inheritance to loved ones.

To obtain further information, or to request a quotation on the Retirement Advantage Lifestyle Gold Lifetime Mortgage, please contact the Equity Release team on 0800 678 5159 today.