We have rebranded Retirement Advantage products as Canada Life. Visit our Retirement Account and Home Finance pages.

Interest Select Options

Our Interest Select lifetime mortgages could be the right choice for you if you’d like to reduce or remove the impact of interest rolling up on your loan, or would like to leave an inheritance to your family. This is because, unlike traditional lifetime mortgages, these options allow you to pay some or all of the interest to help you manage your loan balance.

You can:

  • Pay between 50% and 100% of the interest each month.
  • Choose how long you pay the interest for – between 5 years and the total life of the loan.
  • Choose to stop the interest payments and convert the loan so that the interest rolls up.
  • These lifetime mortgages have early repayment charges that are fixed for the first 8 years, with no repayment charge after the 9th
  • If you want to protect some of the equity in your property, you can choose to take advantage of our inheritance guarantee, free of charge.
  • If you think you might want to borrow more money in the future, you can add a cash reserve facility to your lifetime mortgage at the outset for an additional 0.20% MER (0.21% AER). This means you’ll be able to withdraw more funds at a later date, without having to take further financial advice.
  • This product has our Downsizing Protection which means that if, after 5 years, you decide to downsize, you won’t need to pay an early repayment charge.
  • This product also benefits from our Early Repayment Waiver. In the case of joint borrowers, you won’t need to pay an early repayment charge if you decide to repay the lifetime mortgage within 3 years of the date that the first borrower dies or goes into long term care.
  • Free valuation, with no cap.
  • Fixed interest rate for life.

Your financial adviser will be able to talk you through our product features in more detail.

  • You can release between £10,000 and £750,000 from your property.
  • Your interest payments are paid monthly by direct debit, on a fixed date.
  • You can miss up to three non-sequential interest payments without penalty.
  • If you miss more than three payments, your loan will be converted to interest roll-up. If you choose to stop making payments before the end of the interest paying term, your loan will be converted to interest roll-up. With both of these options, the interest rate on the interest paying part of the mortgage will increase by 0.20% MER (0.21% AER).
  • Your payment term is fixed from the outset, and can’t be reduced or extended once the lifetime mortgage has been set up.
  • Your payment amount is fixed from the outset, and can’t be reduced or increased once the lifetime mortgage has been set up. However, you can choose to stop making payments, as described above.
  • Once payments have been stopped, they can’t be restarted again.
  • Interest payments can be made on additional borrowing.
  • The interest rate applied to any additional borrowing may be higher or lower than the interest rate applied to the initial advance.

Lifetime mortgages provide you with a number of features and benefits, but you and your adviser will need to consider how these products will meet your needs and circumstances.

The benefits of a lifetime mortgage include:

  • You still own your home, and you can stay in your home for the rest of your life.
  • The money you release is tax free.
  • You’ll never owe more than the value of your property, because our products come with the ‘No Negative Equity Guarantee’

The potential risks of a lifetime mortgage include:

  • Your entitlement to state benefits and grants might be affected by taking out a lifetime mortgage.
  • Taking out a lifetime mortgage could reduce the size of your estate.
  • Taking out a lifetime mortgage is a significant financial decision, it’s not for short-term financial needs.
  • A lifetime mortgage could work out to be more expensive than selling your property in the long run.

Your financial adviser will be able to tell you whether a lifetime mortgage meets your financial needs.

You can view our initial advance, cash reserve facility and additional borrowing interest rates and LTVs by clicking here

"We need to repay our interest only mortgage but mainstream mortgage lenders won't lend to us. We'd like to take out a lifetime mortgage and to be able to continue making monthly payments to prevent the interest rolling up"

Read Janet and Peter's story

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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.