Over 55 Buy-to-Let Options

Our Over 55 Buy-to-Let Options are secured against a Buy-to-Let Property. This means that if you’re a Landlord aged 55 or over, you can release cash from your property tax free, leaving your entire portfolio intact.

The equity you release from your property is yours to do whatever you like with, and our range of products allow you to choose whether you want to make any payments.

  • Early repayment charges that are fixed for 8 years. This means that from the 9th year you won’t need to pay an early repayment charge if you decide to repay the mortgage early.
  • No affordability assessments.
  • No minimum income requirements.
  • Fixed interest rate for life.
  • An open ended mortgage term, so you won’t need to refinance at a later date.
  • Option to make voluntary payments.
  • Free valuation, with no cap. 

Please speak to your financial adviser to find out more about how our product features might work for you.

  • There are two options in our product range, which allow you to choose whether to let the interest roll up, or make voluntary payments:
    • Over 55 Buy-to-Let Lifestyle.
    • Over 55 Buy-to-Let Voluntary Select.
  • We define a Buy-to-Let property as a property that:
    • You the owner don’t occupy
    • Is let out with an Assured Shorthold Tenancy (AST) in place.
  • Over 55 Buy-to-Let Lifestyle:
    • This is an interest roll-up Buy-to-Let mortgage.
    • No interest payments are due, instead it is added to the outstanding loan balance.
  • Over 55 Buy-to-Let Voluntary Select:
    • This is a capital and interest paying Buy-to-Let mortgage.
    • You can make a voluntary repayment of up to 10% of the initial loan amount every year, with no penalties.
    • Your 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.
  • You can release between £10,000 and £750,000 from your Buy-to-Let property
  • The interest rate applied to any additional borrowing may be higher or lower than the interest rate applied to the initial advance.

Canada Life is regulated by the Financial Conduct Authority (FCA).

However, the majority of our Over 55 Buy-to-Let Mortgages are unregulated. Whilst our Buy-to-Let Mortgages share characteristics with a Lifetime Mortgage, they are not a Lifetime Mortgage, as defined by the FCA . Instead, they are a Buy-to-Let mortgage. This means that you will not benefit from the protection of the FCA conduct rules or the Financial Services Compensation Scheme (FSCS). Most forms of Buy-to-Let Mortgage are not regulated by the Financial Conduct Authority (FCA), however if the property was not originally purchased with the intention of letting it out, it may be regarded as a Consumer Buy-to-let which is regulated by the FCA.

Canada Life is a member of the Equity Release Council. 

However, our Over 55 Buy-to-Let Mortgages do not meet all of the Councils product standards because the mortgage isn’t being secured against your main residence. Instead, money is being unlocked from your Buy-to-Let property. Therefore the right to remain in the property for life, or until you move into long term care, do not apply as these standards are designed to protect you only in your main residence.

In addition, our Over 55 Buy-to-Let Mortgages do not include the right to move the product to a suitable alternative property.

The remaining product standards apply in full to this product range, including a fixed interest rate for the life of the loan, a No Negative Equity Guarantee, and an independent valuation.

These options provide a number of features and benefits, but you and your adviser will need to consider how the product will meet your financial needs and circumstances. 

The benefits of a Buy-to-Let mortgage include:

  • You retain ownership of the property for the rest of your life.
  • The money you release is tax free.
  • The ‘No Negative Equity Guarantee’ means that you will never owe more than your property is worth.

The potential risks of a Buy-to-Let mortgage include:

  • Taking out a Buy-to-Let mortgage might affect your entitlement to state benefits and grants.
  • A Buy-to-Let mortgage could reduce the size of your estate.
  • A Buy-to-Let mortgage is a significant financial decision and isn’t for short-term financial needs.
  • A Buy-to-Let 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 stop making payments on my Buy-to-Let Mortgage, but mainstream lenders won't remortgage my property"

Read Ben's story

"We want to gift money to our grandchildren using the money tied up in our Buy-to-Let property"

Read James and Sophia's story

"Wen I moved into long term care I rented my house out to tenants. Now I want to release money from my property to help pay for the care I'm receiving"

Read Maria's story

Interested in more? Why not look at...

Buy-to-Let Mortgages

These options allow you to release wealth from your property tax-free, leaving your portfolio intact

Buy-to-Let Mortgages

Lifetime Mortgages

Unlock the cash stored in your property

Lifetime Mortgages

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.