Canada Life - Interest Select Platinum
  • Retirement Advantage - Interest Select Platinum logo
  • Rate: 5.45%
    APR: 5.70%
    Incentive: Yes
    Offers: Cashback | Free Valuation | Interest Servicing Plan | Inheritance Protection | 8-Yr Fixed Early Repayment Charge | Downsizing Protection Drawdown Option* | 3-Yr No Early Repayment Charge**

Background

Retirement Advantage are a provider of retirement solutions who were formerly known as Stonehaven, with an arm of equity release products that were referred to as Stonehaven Equity Release. That series of products was very well known in the retirement product marketplace. Despite the name change, the products have retained their reliability and Retirement Advantage has continued to be one of the more reputable and innovative providers of retirement products.

The Interest Select options offered show some of the unique and flexible features available through the Retirement Advantage product portfolio. These specifically include the ability to service part, or all of the interest charged, thus creating the ability to manage the future balance & ultimately protect the beneficiaries’ inheritance.

Criteria

The Interest Select Platinum product offers a loan amount ranging from £10,000 to £750,000. However, Retirement Advantage will consider applications for larger loans on an individual case-by-case basis. 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.

An applicant must be at least 60 years old to be eligible for the product and they cannot be over age 90. If it is a joint borrower situation, the youngest borrower must be 90 or younger.

The property values eligible for the Interest Select Platinum range from £70,000 to £6 million and need to be located in Wales, England or Scotland. Even though the general rule is that properties must not exceed a value of £6 million, any applicants with homes valued above that threshold are still reviewed on a case-specific basis. With the Interest Select Platinum, loan-to-values start at 29% at age 60 and end at 29% for ages 80 to 90.

Features

The Interest Select Platinum is a lifetime mortgage allowing payments of some, or all of the interest each month. To begin the process for securing an Interest Select product the borrower is not required to undergo an affordability check. This essentially means that the homeowner does not have to provide any supporting documentation or undergo an affordability assessment before taking advantage of the product.

There are also a number of features with the Interest Select Platinum that allow for a level of flexibility for homeowners. There is an early repayment waiver available to borrowers. This means that borrowers are not required to pay an early repayment fee if they pay off their lifetime mortgage within 3 years of the date that the first borrower passes away or enters long term care.

There is also a downsizing protection featured offered with the Interest Select suite of products. This means that if after five years, the homeowner wants to repay their loan because they are selling it and moving to a new one, they do not need to pay an Early Repayment Charge. The Interest Select Platinum also allows for the mortgage to be ported. Thus, if the homeowner decides to move house in the future, the lifetime mortgage can be transferred as long as the property moving into meets the lenders criteria. The early repayment waiver, downsizing protection, and portability features offer heightened flexibility to homeowners.

Aside from the features that increase flexibility, there are additional features offered with the Interest Select suite of products, including those features that keep a homeowner’s family in mind. The Interest Select platinum offers an inheritance guarantee. This is particularly important with this line of products since many who take advantage of the Interest Select options do so precisely so they can ensure an inheritance to their loved ones. This feature is also offered free of charge to borrowers. A no negative guarantee is also offered with this product. So, the homeowner’s loved ones will never be left with a bill following the eventual sale of the home.

Should early repayment arise, there are also fixed early repayment charges with these products. For the first five years, it is 5%, then 3% for the years 5-8, and 0% for year 9 and after. These are the most favourable in the equity release marketplace. Combine this with a loan-to-value ratio’s starting at 29% of the property value at age 60, makes the Retirement Advantage Interest Select Platinum Plan have one of the highest maximum equity releases around.

Suitability

The Interest Select Platinum product is ideal for those borrowers who want to ensure they are able to leave behind an inheritance to loved ones. With this product, they can utilize the inheritance guarantee. Additionally, for those who are concerned about leaving debts behind to their family, the no negative equity guarantee ensures that no one is left with a bill once the home is finally sold.

This product is also attractive to borrowers who want to be assured and in control of their payment structure. Once the lifetime mortgage has been completed, the payments cannot be increased or decreased by the lender. Management of the payments are in the control of the homeowner as there is also the option of stopping payments at anytime in the future, should the ability to repay, or circumstances change.

Finally, there are quite a few safety features offered with the Interest Select Platinum that makes this a good product for those borrowers who want to maintain a level of flexibility. With the ability to port, cease payments, as well as the downsizing protection, homeowners do not need to feel stuck in their current situation, even after taking advantage of the Interest Select Platinum Lifetime Mortgage out.

In deciding whether the Interest Select Gold or Platinum is most suitable would depend on the size of the loan required and the age of the youngest applicant, with Gold starting at 55 & Platinum age 60. Secondly, as the Platinum Plan will offer higher maximum releases, the consequence will be a higher interest rate than the Gold plan. Therefore, if the Interest Select range is of interest & suitability, these factors will need to be assessed in consideration of the most favourable plan.

To obtain further information, or to request a quotation on the Retirement Advantage Interest Select Platinum 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.