Please note the M&G funds are priced as at 06/12/18 and will be updated on the 11/12/18 due to no price being issued.
We have rebranded Retirement Advantage products as Canada Life. Visit our Retirement Account and Home Finance pages.
Please be aware the Canada Life International offices will be closed from 9am Monday 24th December, re-opening at 9am on Thursday 27th December. Then closing from 9am on Monday 31st December and re-opening at 9am on Wednesday 2nd January 2019.

Early Repayment Charges (ERCs)

We‘ve designed our ERCs with your customer in mind. They are fixed, transparent and simple to understand. This means that your customers know where they stand throughout the mortgage term, and have peace of mind from the outset.

  • The mortgage may be repaid in full at any time
  • Partial repayments may also be made, providing there is a minimum loan balance of £10,000 remaining
  • Early repayments may be subject to an ERC. If your customer has a product with a fixed ERC, the ERC applied to their mortgage is described in further detail below.
  • The ERC may vary depending on which mortgage your client has taken.

We will look at the date your customer’s borrowing completed and the date they request to make the redemption. The ERC is then calculated on the initial advance, cash reserve facility withdrawal or further advance as below:

 

Capital Select Options, Lifestyle Options (except Lifestyle Platinum (Cashback)), Interest Select Options and Voluntary Select Options

Year of repayment (end of year)

Percentage of the borrowing payable

0 – 5

5%

6 – 8

3%

9 +

0%

 

Lifestyle Platinum (Cashback) only

Year of repayment (end of year)

Percentage of the borrowing payable

0 – 5

8%

6 – 8

6%

9 +

0%

 

Prestige Options only

Year of repayment (end of year)

Percentage of the borrowing payable

0 – 5

10%

6 – 10

5%

11 +

0%

An ERC is applicable if the customer to redeems part, or all, of the mortgage within the ERC term.

An ERC is not applicable in the following situations:

  • Your customer(s) transfers the mortgage to another property, if the property is acceptable to Canada Life
  • Your customer (or the last surviving customer) is moving into long term care (main residence properties only)
  • When repayment takes place after the customer’s death (or the death of the last customer)
  • The ERC term of the mortgage has expired
  • On some Options, if your customer wants to repay their mortgage because they are selling their home and downsizing to a different property
  • On some Options, if your customer decides to repay their mortgage within 3 years of the date that the first borrower dies or goes in to long term care
  • If your customer makes voluntary payments allowed under our Capital Select Options or Voluntary Select Options

You can find more in our Guide to Fixed ERCs

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.