This Canada Life Interest-Only Platinum Mortgage enables any homeowner to spend their tax-free cash as they wish and choose to make a level of monthly contribution which befits their affordability levels, and not that of the lenders, as any conventional mortgage would.
Homeowners can choose their level of contribution towards the interest charged by Canada Life of between 50% of the interest calculation, upto 100% of the maximum amount of interest charged each month. One important feature of Canada Life's Interest Select Platinum Plan is that they do NOT require any evidence of income or affordability, both pre and post retirement age.
With levels of repayment between 50-100% of the interest charged, homeowners can manage the future balance of their Platinum Plan. For instance, to facilitate an interest-only basis, thus maintaining a level mortgage balance, the plan would need 100% of the interest to be repaid each month. Even repaying 50% of the interest monthly would help in reducing the normal effects of roll-up and keep the balance lower than otherwise have been.
The fixed monthly payment needs to be maintained for a period of 5 years minimum, or the whole of the life of the equity release loan. After 5 years, there is the option to stop making monthly payments & instead allow the interest to roll-up. This will have the effect of increasing the interest rate by 0.2%.
A further option for inclusion is the Inheritance Protection feature, so the homeowner can secure a fixed percentage of the final sale value of the property. This is important for those who wish to guarantee a percentage of the house value from their inheritance.
Being a core interest-only product, there is also the option to add a cash drawdown facility. Therefore, when the initial tax-free lump sum is released, any remaining unused cash is retained in an uncapped cash reserve facility. This is ideal for those looking to control the balance by making monthly repayments, whilst at the same time having access to future funds in the future.
As part of the Canada Life Equity Release plan range a cashback of £1,000 can be selected by the homeowner, which has the effect of increasing the interest rate by 0.10%.
*Adding a drawdown facility to the Platinum Plan has the effect of adding 0.2% to the interest rate
**The 3-year no early repayment charge applies to joint life plans where the loan is repaid within 3 years of death or long-term care of a partner
To obtain further information or to request a quotation on the Canada Life Interest Select Platinum Lifetime Mortgage, please contact the Equity Release Supermarket team on Freephone 0800 802 1051 today.