Canada Life - Lifestyle Gold Plus
  • Retirement Advantage - Lifestyle Gold Plus Logo
  • Rate: 5.45%
    APR: 5.70%
    Incentive: Yes
    Offers: Free Unlimited Valuation | Cash Reserve Option | Fixed 8 Year Early Repayment Charges | Inheritance Guarantee Feature

Background

Retirement Advantage was created when MGM Advantage re-branded in 2015 following its acquisition of the former equity release lender, Stonehaven Equity Release. Retirement Advantage dates back to 1852 and has stayed consistent in maintaining a portfolio or retirement products that can be tailored to the individual needs of each consumer. Retirement Advantage’s range of innovative lifetime mortgage products offer a customisable approach to managing finances during retirement.

The Retirement Advantage Lifestyle Gold Plus plan offers a higher maximum lump sum than the Lite & Gold plans, albeit less than the Lifestyle Platinum. Selection will depend on the capital amount required initially and the interest rate which the homeowner deems relevant to their requirements.

Criteria

The Lifestyle options from Retirement Advantage work well for those borrowers who want to receive a single cash lump sum upfront, and who do not want to make any interest payments on the loan. To take advantage of any of the Lifestyle options offered by Retirement Advantage, borrowers must be between the ages of 60 and 90. If borrowing jointly, the youngest borrower must be no older than 90 years old.

The properties eligible for participation with the Lifestyle Gold Plus product from Retirement Advantage must be located in England, Wales and Scotland and must have a valuation that falls in the range between £70,000 and £6 million. Those properties valued over the higher threshold are still reviewed on a case by case basis. With the Lifestyle Gold Plus product, the loan-to-value percentage starts at age 60 at 26% and ends at 46% for ages 80-90.

Features

There are a number of features that make Retirement Advantage’s Lifestyle options unique. To start, the early repayment charge, should the borrower choose to repay their loan, is fixed for the first 8 years. This applies to the initial loan taken as well as any additional borrowing or withdrawal 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% and no penalty exists thereafter.

There are a couple of features that make this product particularly attractive to borrowers who would still like to maintain an inheritance for their loved ones. With the Lifestyle Gold Plus, there is an Inheritance Guarantee offered free of charge so that the borrower can still leave behind some form of inheritance to love ones. Additionally, there is a no negative equity guarantee which means that if the final sale of the property does not cover the remaining loan balance, there is no debt owed from the remaining loved ones.

Borrowers also have the option with the Lifestyle Gold Plus to port the mortgage and move the loan to another property if they choose.

Borrowers can take additional money in the future if they are found eligible at the time of that application. With the additional borrowing under this product, the borrower must stay within the LTV for the Lifestyle Gold Plus. This would apply to each of the Lifestyle options offered by Retirement Advantage. The borrower must stay within the LTV’s for their particular product when borrowing additional money. There is no completion fee applied with additional borrowing but the minimum withdrawal amount is £4,000.

Retirement Advantage also provide a cash reserve option on this product. If borrower’s want to take advantage of the cash reserve facility feature, they can expect to have their interest rate increased by 0.2%. The minimal withdrawal amount for this feature is £2,000 and the maximum is the full amount remaining in the cash reserve facility.

Suitability

The Lifestyle Gold Plus is ideal for those borrowers who want to receive a cash lump sum payment immediately, but who do not want to pay back the interest or be forced to make monthly payments. Similarly, this product works well for those borrowers who have an unpredictable income, or cannot prove affordability. Likewise, if borrowers know that they cannot afford payments, the Lifestyle Gold Plus is a good option.

The Lifestyle Gold Plus also works well for those homeowners who want to reserve the right to leave behind an inheritance to their loved ones. With the no negative equity guarantee and the inheritance guarantee, borrowers can still protect an inheritance for their loved ones.

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

* The addition of a cash reserve facility has the effect of adding 0.2% to the baseline interest rate.