Retirement Advantage was formed when MGM Advantage acquired the equity release lender, Stonehaven Equity Release. Out of MGM Advantage’s re-branding in 2015, came Retirement Advantage. The products are still the same quality as always and the products have maintained their ability to be tailored to each borrower’s individual retirement needs.
The Voluntary Select products offered by Retirement Advantage offer a level of repayment flexibility to borrowers. These products are lifetime mortgages that allow borrowers to make a contribution toward their overall balance and initial loan amount each year. The borrower can do so without incurring any early repayment charges, upto the limits imposed.
To be eligible for the Voluntary Select Platinum product, borrowers must be between the ages of 60 and 90. There is also an option to borrow jointly in which case the youngest borrower must be 90 years old or younger.
The minimum loan amount available is £10,000 and the maximum is £2 million. Property valuations must be between £70,000 and £6 million. That said, properties over £6 million can still be reviewed for approval. Properties must be in Wales, Scotland and England in order to qualify for the Voluntary Select Options Products. The LTV percentage with the Voluntary Select Platinum starts at 29% at age 60 and ends at 49% for ages 80-90.
One of the most unique features of this product is that it allows borrowers to make voluntary payments with the Voluntary Select Platinum product. They can pay up to 12.5% of the initial loan amount each year, either managing to keep the balance level by paying off the interest only, or by making full use of the 12.5% allowance to reduce the balance over the years. The minimum repayment that can be made is £50 & can be unlimited in frequency.
Early repayment charges with the Voluntary Select Platinum are fixed for the first 8 years of the loan. For years 0-5, the charge is 5% and for years 6-8 it is 3%. There are no early repayment charges after this period, which is ideal for those who are looking to repay in the future.
There is a downsizing protection offered with the product, so that if, after 5 years, the borrower decides that they would like to pay off the loan in order to move to a different home, they will not incur an early repayment charge.
There is an early repayment waiver included with this product. This waiver applies if the borrower decides that they would like to pay off the balance of their loan within the first 3 years of the date that the first borrower either enters long term care of passes away.
There is also a free Inheritance Guarantee offered with the Voluntary Select Platinum. And borrowers are able to port their loan if they choose. Lastly, there is also a No Negative Equity Guarantee that comes with the full line of Voluntary Select products offered by Retirement Advantage. That guarantee states that if the final sale of the property does not cover the outstanding loan balance, there will be no debt owed by loved ones. Both the Inheritance Guarantee and the No Negative Equity Guarantee are attractive to those borrowers who want to leave behind and inheritance to loved ones.
Borrowers may be eligible for additional borrowing with the Voluntary Select Platinum product. They must be eligible at the time of that application and must stay within their original LTV range and cannot switch to a new product. The minimum amount for additional borrowing is £4000.
The Retirement Advantage Voluntary Select Platinum is most suitable for those borrowers who want the freedom of paying their loan back and being able to do so on a time-frame that works for them. This product is also a good option for any borrower who has concerns over potential interest roll-up and its impact on their home’s equity.
With this product, borrowers are able to pay back the interest each year and can even pay some of the capital owed. So, this product is a good fit for any borrower hoping to leave behind an inheritance. Lastly, this product also works well for any borrower who is looking for flexibility in repayment. With this product, borrowers have the option to pay back the loan but is not tied to regular monthly payments.
To obtain further information, or to request a quotation on the Retirement Advantage Voluntary Select Platinum Lifetime Mortgage, please contact the Equity Release team on 0800 678 5159 today.