This Canada Life smartER Gold Lifetime Mortgage enables any homeowner to spend their tax-free cash as they wish and choose to make a level of voluntary 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 which can be upto 10% of the original capital amount borrowed, with NO penalty charged. One important feature of Canada Life's smartER Gold Plan is that they do NOT require any evidence of income or affordability, both pre and post retirement age.
With levels of repayment of upto 10% of the original amount borrowed, homeowners can manage - if they wish, the future balance of their smartER Gold Plan. For instance, to facilitate an interest-only basis and thus maintaining a level mortgage balance, the plan would need 100% of the interest to be repaid each month. Even repaying a lower amount than 100% of the interest charged each month would help in reducing the normal effects of roll-up and keep the balance lower than otherwise have been.
Payments are flexible and the level of repayment is chosen by you. Unlimited payments are permitted throughout the year and by exercising the maximum 10% repayment strategy, could effectively reduce the balance, if required. The minimum repayment is £50 and these payments can be made by debit card, cheque, bank transfer, or most commonly for an interest only mortgage - by standing order. A standing order mandate is enclosed within your welcome pack.
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 smartER 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. The minimum drawdown available is £2,000 a time and there are no administration fees charged for these withdrawals.
*Adding a drawdown facility to the smartER Gold 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 smartER Gold Lump Sum Lifetime Mortgage, please contact the Equity Release Supermarket team on Freephone 0800 088 5898 today.