Second Home Options

Our Second Home Options provide your customer with a one-off, tax-free cash lump sum. There are a range of options for your customer to choose from, allowing them to make voluntary payments to service the interest and capital, or let the interest roll up.

  • 8 year fixed early repayment charges.
  • Free valuation, with no cap.
  • The interest rate is fixed from the outset.
  • No affordability assessments.
  • Option to make voluntary payments.

You can find out more about these product features in our Second Home Options At A Glance guide.

  • Customers can release between £10,000 and £750.000.
  • The interest rate applied to any additional borrowing may be higher or lower than the interest rate applied to the initial advance.
  • There are two options in our product range:
    • Second Home Lifestyle.
    • Second Home Voluntary Select.
  • Unlike traditional lifetime mortgages, these Options are secured on a Second Home property, rather than a main residence. We define a Second Home as a property that:
    • Must be available for the sole occupancy of the owner.
    • If let out, must be let out for only a maximum of 4 weeks at a time.
    • Must be used by the homeowner for a minimum of 4 weeks every year.
  • Second Home Lifestyle:
    • This is an interest roll-up lifetime mortgage.
    • No interest payments are due, instead it is added to the outstanding loan balance.
  • Second Home Voluntary Select:
    • This is a capital and interest paying lifetime mortgage.
    • Your customer's annual voluntary repayment allowance is renewed on the anniversary of the completion date.
    • There are no penalties if no contributions are made in a year, and it does not affect the future annual allowances.
    • Voluntary contributions can be made on additional borrowing.

These options provide a number of features and benefits, but as with all equity release products, you and your customer will need to consider how the product will meet their needs and circumstances.

Benefits of a lifetime mortgage:

  • Your customer can retain ownership of their property for the rest of their life.
  • The money your customer releases is tax free.
  • The ‘No Negative Equity Guarantee’ means that your customer will never owe more than the value of their property.

Potential risks of a lifetime mortgage:

  • Taking out a lifetime mortgage may affect your customer’s entitlement to state benefits and grants.
  • A lifetime mortgage may reduce the size of your customer’s estate.
  • A lifetime mortgage is a significant financial decision, not for short-term financial needs.
  • A lifetime mortgage may work out to be more expensive in the long-term than selling the property.

Click here to view our initial advance, cash reserve facility and further advance interest rates and LTVs.

"I want to release some money from my second home to pay for my daughter's wedding"

Read Nicholas' story

"I need to repay the mortgage on my main residence, and I want to use the property wealth that's stored in my main residence and second home"

Read Valerie's story

You can log-in to our straightforward and easy to use KFI generator and online application system to generate a quote or submit your customer’s application to us.

Log in to our KFI generator and online application system here.

Not registered with us? Find our registration forms in the Home Finance IFA Zone.

Interested in more? Why not look at...

Lifetime Mortgages

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Lifetime Mortgages

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Buy-to-Let Mortgages

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 and regulated by the Financial Conduct Authority.