Additional borrowing

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

A fixed interest rate will be applied to each additional loan amount, based on the prevailing cash reserve facility interest rate or further advance interest rate on the product at the time when you apply. This interest rate may be higher or lower than the interest rate which is applied to your initial advance. Our current additional borrowing interest rates can be found here.

If your financial adviser recommended a cash reserve facility at the outset, you can withdraw the amount as and when you choose to do so, without needing further financial advice. If a cash reserve facility was not added to your mortgage at the outset, you’re unable to add one at a later date.

You can drawdown from your cash reserve facility at any time. To make a withdrawal:

  • Please contact us on 0800 068 0212 and let us know that you would like to make a withdrawal
  • We will ask you for some information, including what you intend to use the money you release for
  • We will then send you an Offer and an Offer Acceptance Form. Please fill out the form and send it back to us
  • Once we have received your Offer Acceptance Form, we will undertake some legal checks. Completion of the withdrawal will be subject to bankruptcy checks being satisfied and our charge having been fully registered
  • Once our checks have been completed, we will release the funds directly into your bank account. We will endeavour to release the payment as soon as is reasonably possible.

Please note, the minimum withdrawal amount is £2,000 and the maximum is the total of your facility. If the amount remaining in the cash reserve facility is less than £2,000, you are able to withdraw it, but must do so in full.

If you currently have an interest servicing product, you may be able to choose to make interest payments on your withdrawals. If you have a flexible repayment product, you can make repayments on the withdrawal.

The amount within the cash reserve facility is fixed at the outset. It does not increase in line with property value, age or repayments. If you currently have a cash reserve facility, you will need to have withdrawn the total amount before you can apply for a further advance.

To apply for a further advance you will need to seek further financial advice. You can find a financial adviser here.

Your financial adviser will contact us to request an illustration, confirming the following details:

  • The further advance amount. This can either be a specific amount or the maximum amount available.
  • If you have an interest paying product, whether you would like the loan to be on an interest paying or interest roll-up basis. If interest paying, they will confirm the amount that you wish to pay. For example, the full interest, or 50%.
  • Whether you would like a new property valuation to be carried out. If so, a valuation fee will be payable.
  • If they are charging an advice fee, and if so, the amount.
  • We will then send an illustration and an application form to your financial adviser. They will talk you through the illustration and help you to fill in the application form. Providing your application is successful we will release the funds to you.

Please note, the minimum amount that can be taken as a further advance is £4,000.

You must remain on your original product with Canada Life. For example, if you currently have an Interest Select Gold product, you cannot move to an Interest Select Platinum product, you must remain within the LTVs available to Interest Select Gold.

You can view our current additional borrowing interest rates here.

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.