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 with a continuation of the innovation of new & exciting equity release schemes that homeowners can take with the through their retirement.
The most appealing feature of all Retirement Advantage products is their ability to be customized to each borrower’s unique retirement needs to provide flexibility, repayment options, low interest rates & some of the maximum equity release loans available in the marketplace.
The Voluntary Select Gold is a core product in Retirement Advantage’s portfolio. With this product, borrowers have the option to add a drawdown facility if they so choose. This is ideal for any borrower who wants flexibility in their future finances. Borrowers can also choose to add a cash drawdown facility to the product which offers its own level of flexibility in that the borrower may be able to withdraw additional funds following the initial loan.
To be eligible for the Voluntary Select Platinum product, borrowers must be between the ages of 55 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. LTV percentages start at 19% at age 55 and rise upwards with age to 44% at ages 80-90.
Borrowers are able to make voluntary payments if they wish to with the Voluntary Select Gold plan. Those payments have to be at the minimum payment amount which is £50. Borrowers can contribute up to 12.5% of the initial loan amount each year without incurring an early repayment charge. The first payment can be made as early as the first day following completion and they can be made as frequently as the homeowner chooses. This is ideal for those who want to make ad-hoc repayments, but with the discipline of a conventional mortgage.
There is no proof of income required with this plan and borrowers are not penalized if they do not use the annual payment allowance. There is a downsizing protection option, which means that if after 5 years have passed, the borrower wants to repay the loan early because they are moving to a different property, they can do so without paying an early repayment charge.
Likewise, there is an early repayment charge waiver if one of the borrowers to a joint life application decides to repay their loan within 3 years following the date the first borrower dies or leaves the home for long term care. The borrower can also port the product if they choose.
The Voluntary Select Gold can also be used as a drawdown lifetime mortgage. This means that the borrower is granted an initial lump sum payment that they can use right away however they want and then reserve the rest of their unused cash in a cash reserve facility. This is the perfect scheme for those borrowers who want some cash up front, but also want the option to withdraw future funds if needed. In order to withdraw from the case reserve, borrowers must borrow the minimum withdrawal amount of £2000.
There is a no negative equity guarantee with the Voluntary Select Gold product, as with all Retirement Advantage products. This means that beneficiaries cannot be left with any debt following the final sale of the property. There is also an inheritance guarantee offered.
The early repayment charge is perhaps the biggest feature offered with this product. Retirement Advantage only charges an early repayment charge for the first 8 years. The charge is 5% for the first 5 years and then 3% for the following three. There is no penalty incurred after that initial 8 years.
The Voluntary Select Gold is most suitable for those borrowers who want access to cash right away, but also want a cash reserve facility to provide an option for accessing more money in the future. 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 as they have the advantage of being able to control the future balance using voluntary payments.
This product is also particularly attractive to those borrowers who want to leave behind and inheritance for loved ones. With the Inheritance Guarantee and the No Negative Equity release, borrowers can still take advantage of the product while also ensuring they are able to leave behind an inheritance.
To obtain further information, or to request a quotation on the Retirement Advantage Voluntary Select Gold Lifetime Mortgage, please contact the Equity Release team on 0800 678 5159 today.