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)

The mortgage may be repaid in full, or in part, at any time. However, our plans are designed to last for the rest of your life so an early repayment charge (ERC) may be payable if the mortgage is repaid earlier.

We’ve designed our ERCs with you in mind. They are fixed, transparent and simple to understand. We want to make sure that you understand where you stand throughout the mortgage term and have peace of mind at the outset.

  • You can choose to repay your mortgage in full at any time
  • You can also choose to make partial repayments, providing there is a minimum loan balance of £10,000 remaining
  • Any early repayments that you make may be subject to an ERC. If you have a product with a fixed ERC, the ERC applied to your mortgage is described in further detail below.
  • The ERCs vary depending on which product your financial adviser recommended. They will be able to talk you through the ERCs in more detail.

We will look at the date that your borrowing completed and the date that you 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 you choose to redeem part, or all, of the mortgage within the ERC term.

An ERC is not applicable in the following situations:

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

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.