With effect from 10am – Tuesday 14th April, we’ve changed the interest rates and LTVs across our Lifestyle Options and Capital Select Options.
We’re also temporarily closing Lifestyle Gold Plus, Lifestyle Platinum, all Voluntary Select Options and all Prestige Options to new business.
Our new interest rates are shown in the Product Information table below highlighted in red.
Capital Select Options:
| Current interest rate (AER) | New interest rate (AER) | Current LTV (age 70) | New LTV (age 70) | |
|---|---|---|---|---|
| Capital Select Super Lite | 2.99% | 3.59% | 29% | 26% |
| Capital Select Lite | 3.29% | 3.89% | 32% | 29% |
| Capital Select Gold | 3.59% | 4.19% | 35% | 32% |
| Capital Select Gold Plus | 4.39% | 4.99% | 38% | 35% |
| Capital Select Platinum | 4.99% | 5.49% | 42% | 38% |
| Capital Select Platinum Plus | 6.45% | 6.45% | 45% | 41% |
If you choose to add a cash reserve facility, the interest rate will increase by 0.21% AER. If you choose to add 3% cashback, the interest rate will increase by 0.31% AER.
Please note, our adjusted APRs have been calculated using the following inputs:
- Standard: £0 completion fees, £1,000 advice fee, £474 Legal Fees, £100k initial advance, 20-year loan term.
- Drawdown: APRs are the same figures as the AER to 8dp.
Further Advances: £380 valuation fee, £100k initial advance, £500 advice fee, 20-year loan term.
Lifestyle Options:
| Current interest rate (AER) | New interest rate (AER) | Current LTV (age 70) | New LTV (age 70) | |
|---|---|---|---|---|
| Lifestyle Lite | 2.80% | 2.85% | 26% | 20.8% |
| Lifestyle Gold | 3.00% | 2.89% | 31% | 24.8% |
|
- Standard: £650 completion fees, £1,000 advice fee, £474 Legal Fees, £100k initial advance, 20-year loan term.
- Drawdown: APRs are the same figures as the AER to 8dp.
- Further Advances: £380 valuation fee, £100k initial advance, £500 advice fee, 20-year loan term.
Valuations:
We’re pleased to confirm that from Tuesday 14th April, we’ll introduce remote valuations on our Lifestyle Options. The remote valuations on our Lifestyle Options will be subject to:
- A new KFI and application, based on our new interest rates, LTVs and product availability
- A satisfactory on site valuation within 6 months of completion, which is free of charge
- Temporary modifications to our lending criteria, including:
- Capping our maximum property value at £1m in Greater London and £750,000 elsewhere
- Only accepting properties built post-1850
- Only accepting properties with up to 2.5 acres
- Only accepting lease terms above 100 years
- No longer accepting listed properties
- No longer accepting new build properties or properties built within two years of the date of valuation
- No longer accepting non-standard construction properties
- No longer accepting properties which are adjacent to, or surrounded by, non-residential properties
We’re still working in partnership with our other funders to confirm our approach for the remainder of our product ranges, including our Capital Select Options. Any solution we progress with will require applications to be submitted on our new interest rates and LTVs, which can be found below.
We’ll let you know how these discussions progress and provide an update to you as soon as we are in a position to do so.
Legal process:
The Equity Release Council have confirmed a temporary modification to the requirement for customers to receive legal advice in a face-to-face setting. As a member, we’ll be adopting this approach going forwards.
You can find more information about the changes that have been made here.
Pipeline cases:
If your customer wants to proceed on our Lifestyle Options, you will need to generate a new KFI and submit a new application after 10am on Tuesday 14th April.
If your customer wants to continue with an application on the current interest rates and LTVs for our Capital Select Options, you will need to generate a KFI and submit an application before 10am on Tuesday 14th April.
Currently, all applications (apart from applications on our new interest rates and LTVs on our Lifestyle Options) are subject to having an on site valuation and receiving an Offer letter before 5pm on Friday 15th May. We’re working closely with our funders to offer a remote valuation solution on our other product ranges (at new interest rates and LTV’s) in the near future.
Our full Product spread is shown in the document attached, changes are highlighted in red, please do not share.
All product specs/case studies/literature can be found in our document library.
Contact us:
Please contact us by email instead of calling, where possible. This will allow our team to prioritise our vulnerable customers and any urgent issues. You can contact the teams by:
Applications team – hf-applications@canadalife.co.uk
Underwriting team – hf-underwriting@canadalife.co.uk
Sales team – hf-sales@canadalife.co.uk
If you would like to speak to us, please email the team and ask for someone to call you back. Alternatively, you can contact a member of the Sales team.
If you have any further queries, please don’t hesitate to get in touch.
Thank you for your ongoing support.
