We have rebranded Retirement Advantage products as Canada Life. Visit our Retirement Account and Home Finance pages.
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Additional borrowing

Here at Canada Life we offer two different types of additional borrowing; a cash reserve facility drawdown and a further advance. 

If your customer has a cash reserve facility, they will need to withdraw the total amount before they can apply for a further advance.

A fixed interest rate will be applied to each additional loan amount, based on the prevailing additional borrowing interest rate on the product at the time when your client applies.

This interest rate may be higher or lower than the interest rate which is applied to their initial advance. Our current additional borrowing interest rates can be found here.

Your customer can choose to add a cash reserve facility to their mortgage at the outset. The facility allows customers to withdraw further funds at any time without having to seek financial advice. If they choose to add this feature onto their mortgage, we'll increase their monthly interest rate by 0.20% MER (0.21% AER).

Your customer can choose when, and how frequently, they drawdown funds from their facility. The minimum withdrawal amount is £2,000 and the maximum is the total of their facility. If the amount remaining in the cash reserve facility is less than £2,000, they can withdraw it but must do so in full.

They can make a withdrawal at any time, so long as their isn't already an withdrawal application in progress. Completion will be subject to bankruptcy checks being satisfied and our charge having been fully registered with Land Registry.

If your customer has an interest servicing product, they may be able to choose to make interest payments on their withdrawals.  

We will endeavour to release the payment as soon as is reasonably possible, but it may take up to 30 days.

To start the application, please send an email to our underwriters and request an illustration, confirming the following details:

  • The additional borrowing loan amount (a specific amount or the maximum amount available).
  • If you would like the loan to be on an interest paying or interest roll-up basis. If interest paying, please confirm the amount they wish to pay (for example, the full interest).
  • If you would like a new property valuation to be carried out (if so, a valuation fee will be payable)
  • If you are charging an advice fee, and if so, the amount. The minimum amount that can be taken is £4,000.

Your customer must remain on their original product. For example, if they currently have an Interest Select Lite product, they cannot move to an Interest Select Gold product, they must remain within the LTVs available to Interest Select Lite.

If your customer has a cash reserve facility, they can't apply for a further advance until they have cleared their facility.

You can view our current additional borrowing interest rates here.

This website is for UK professional advisers only and is not approved for use by private customers.

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority.

Canada Life International Assurance (Ireland) DAC is authorised and regulated by the Central Bank of Ireland.

Stonehaven UK Limited and MGM Advantage Life Limited, trading as Canada Life, are subsidiaries of The Canada Life Group (U.K.) Limited. Stonehaven UK Ltd is authorised and regulated by the Financial Conduct Authority. MGM Advantage Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.