Canada Life - Lifestyle Lite
  • Retirement Advantage - Lifestyle Lite Lifetime Mortgage
  • Rate: 4.02%
    APR: 4.20%
    Incentive: Yes
    Offers: Free Valuation | Inheritance Protection | Fixed Early Repayment Charges

Background

Retirement Advantage was created by MGM Advantage following the acquisition of Stonehaven Equity Release, a reputable equity release lender, renowned for its product innovation. Retirement Advantage continues to be a trusted servicer of retirement products specializing in lifetime mortgages.

With equity release products that span from lump sum schemes, to voluntary repayment plans and finally with interest only lifetime mortgages, consumers can approach their retirement by tailoring a product to fit their individual needs.

Criteria

The Retirement Advantage Lifestyle Lite product is a fairly straightforward product. It provides the borrower with an initial tax-free lump sum. This money can be used for any purpose.

Applicants must be within the age range of 60 and 90 and if borrowing jointly, the youngest borrower must not be over age 90. Property values for these products range from £70,000 to £6 million.

The minimum loan amount under the Lifestyle Lite product is £10,000, while the maximum loan amount is currently £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.

Eligible properties for the Lifestyle Lite product must be in Wales, England or Scotland. The LTV percentage starts at 16% at age 60 and ends at 36% for ages 80-90.

Features

The Retirement Advantage Lifestyle Lite plan comes with an unlimited free valuation, as well as a fixed lifetime equity release interest rate on the initial lump sum taken. This ensures the future balance will be known each year.

There are a number of ways to individualize the Lifestyle Lite product. Borrowers can add a cash drawdown to their equity release. *This would cost an additional 0.2% added to their existing interest rate. No cashback option is available on the Retirement Advantage Lifestyle range of products.

There is also an inheritance guarantee available to borrowers free of charge. So, borrowers have the option to secure a fixed percentage of the final sale value of their property. This ensures that the homeowner is still able to leave behind an inheritance if they so choose. Both of these two features make this product attractive to borrowers who want to ensure that they are able to leave behind an inheritance to loved ones.

The structure of the early repayment charges with this line of products is one of its most attractive features. Early repayment charges are fixed and are only incurred for the first 8 years on the loan. They start at just 5% for the first 5 years and then reduce to just 3% for the next 3 years. After that there are no penalties for early repayment.

The Lifestyle Lite product offers a no-negative equity guarantee. This means that loved ones or the estate’s beneficiaries cannot be left with any outstanding debt following the eventual sale of the property.

Suitability

The Lifestyle Lite is ideal for those borrowers who are looking for a smaller initial lump sum immediately upfront, with no future potential releases likely. They do not want to make any repayments, thus the interest will roll-up over the life of the equity release mortgage.

Additionally, with the Lifestyle Lite borrowers can choose to borrow more funds in the future which is a great option for a borrower who thinks they might need additional cash beyond their initial equity release.

The Lifestyle Lite, with its inheritance guarantee and no negative equity guarantee, is also suitable for those homeowners who want to take part in an equity release scheme, but also want to ensure that they are able to leave behind an inheritance to loved ones.

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