Canada Life Second Home Voluntary Select
Contributors: Nicola Date, Katherine Read. Rachel Wait & Reviewed by Francis Hui
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Canada Life Second Home Voluntary Select Review
Second Home Voluntary Select Key Details
| Type | Rate | APR | |
|---|---|---|---|
 |
Fixed | 5.82% | 6.1% |
Scheme Incentives
- FREE Unlimited Valuation
Scheme Offers
- 2nd Home Equity Release
- 10%pa Voluntary Repayment Allowance
- 8-Year Fixed Early Repayment Charges
I think you’ll agree with me when I say:
It’s REALLY hard to choose the best equity release scheme with all the choices available.
Or is it?
Is the Canada Life Second Home Voluntary Select, equity release scheme the best?
Don’t let your equity release dream become a nightmare!
Luckily, we’re here to guide you on the ins and outs of equity release, as you deserve only the best.
However, it’s important to remember that not all plans are suited to each individual. You need to look for one that will serve your home, your lifestyle, and the reason why you’re considering equity release in the first place.
As leading experts in the field, we’ve delved into hours of research, unpacked all the equity release plans on the market (we’ve reviewed over 250 schemes!), and discovered the best in the business.
- We'll provide detailed information about the Second Home Voluntary Select scheme.
- We’ll help you assess whether this plan could be right for you and your family.
- We'll explain how low the current interest rates are for the Second Home Voluntary Select product.
What’s Equity Release?
An equity release mortgage (see What’s Equity Release?) is, in a nutshell, a loan plus interest that is paid back to the lender when the homeowner passes away or goes into permanent care.
We’ve summed up the most important information about the topic in this quick video.
Who Are Canada Life?
Scheme Background
New kids on the block make confident play within the equity release market.
With a ‘design-it-yourself’ approach to equity release, newly formed Canada Life offers a refreshing suite of products to qualifying homeowners and investors.
Enjoy lump sum, interest only lifetime mortgages, voluntary repayment schemes, Buy-to-Let (BTL) and Second Home equity release plans. Benefit more by adding on extra’s such as cashback, or drawdown facilities and couple this with an 8-year fixed early repayment charge.
Canada Life entered the equity release industry in 2018 following the acquisition of Retirement Advantage, a specialist in providing retirement products such as lifetime mortgages and retirement accounts with roots as far back as 1852. Prior to take-over Retirement Advantage was formed by a re-branding of MGM Advantage in 2015, following the purchase of former equity release lender – Stonehaven Equity Release.
This combination of experience, confidence and innovation makes Canada Life a serious lender in today’s equity release marketplace.
Eligibility & Requirements
The properties utilized within this lifetime mortgage range must be second residences and not the homeowner’s principal property. To qualify as a second home, the property must be available for the owner’s exclusive occupation and, if rented, must not be rented for more than four weeks at a time. It must also be utilized for at least four weeks each year by the homeowner.
Minimum Property Valuation
The house used to secure the lifelong mortgage must be worth between £70,000 and £6 million, with limited exceptions allowed for homes worth more than £6 million.
Property Location Requirements
The property must also be in Scotland, Wales, or England, and it cannot have any written agreements or Assured Shorthold Tenancies in place.
Furthermore, it cannot be promoted openly, such as online or through an agency.
Single vs Joint
Canada life plan updates are still in the works. We will give an update soon.
Minimum Release
For these items, the minimum application age is 55, and the maximum applicant age is 90. The youngest borrower must be 90 years old or younger if borrowing jointly.
Scheme Features
The potential loan amounts for all three products in this Second Home series vary from a minimum of £10,000 to a maximum equity release of £750,000.
The Voluntary Select option is one of three second home lifetime mortgages offered in this line. It allows homeowners to pay up to 10% of the initial loan amount each year without incurring any early repayment penalties. The smallest payment amount permitted is £50, and the maximum payment amount permitted is the maximum 10% limit.
Homeowners can make their first payment as soon as the day after the loan is closed, and they can make an infinite number of installments each year. Payments can be made in a number of methods, including bank transfer, check, standing order, or debit card over the phone. Homeowners are not penalized if they do not meet the annual payment allowance of 10%.
The Retirement Advantage loan-to-value range with the Second Home Voluntary Select begins at 19 percent at age 55 and increases to 44 percent at age 80-90.
The Voluntary Select option is best suited to any homeowner who desires some degree of flexibility in selecting whether or not to pay off any portion of their lifetime mortgage debt. It is an excellent choice for any homeowner who is concerned about interest roll-up since it allows the homeowner some control over their lifetime mortgage balance. All three options in the range are appropriate for homeowners who own a second property yet wish to benefit from the advantages of a lifetime mortgage.
Valuation Features
Canada life plan updates are still in the works. We will give an update soon.
Early Repayment Feature
Canada life plan updates are still in the works. We will give an update soon.
Equity Release Council Status
Canada life plan updates are still in the works. We will give an update soon.
Joint Application Features
Canada life plan updates are still in the works. We will give an update soon.
Scheme Options
With the Second Home Options, you may borrow more money. The lowest loan amount is £4,000, while the maximum loan amount is the maximum amount possible within the product range. When borrowing more cash, homeowners may not transfer to a different product and must stay inside their initial LTV range.
Repayment Options
Canada life plan updates are still in the works. We will give an update soon.
Inheritance Protection
Canada life plan updates are still in the works. We will give an update soon.
Application Fees
Canada life plan updates are still in the works. We will give an update soon.
Cashback Options
Canada life plan updates are still in the works. We will give an update soon.
Footnotes
Canada life plan updates are still in the works. We will give an update soon.
Canada Life's Other Equity Release Schemes
Are you looking for a specific equity release scheme?
Not what you're looking for?
Have a look at all the equity release schemes available on the market, with our easy-to-use table or compare interest rates on equity release!
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