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Clearing mortgage debt top reason for equity release: Canada Life

Clearing an existing mortgage, according to a survey conducted by Canada Life Home Finance, is the top reason for releasing equity on a property in the first half of this year.

More than two in five, 44 per cent, of borrowers used equity release in order to pay off an existing residential mortgage debt, in the first half of 2019. This was followed by borrowers releasing equity in order to make home improvements at 40 per cent.

The survey also shows that the total number of its customers releasing equity on their properties, in order to pay off an existing mortgage has increased from 44 per cent in 2016, to 46 per cent in 2019.

Canada Life Home Finance head of marketing and communications Alice Watson says: “While a large proportion of customers are looking to safeguard their financial future by paying down debts and increasing the value of their home, others are using equity release to improve their lifestyles, paying for home improvements and enhancing their quality of life now.

“As political, economic and social changes seem to be continuing at breakneck speed, we can be sure that the profile of the lifetime mortgage customer will evolve with the times.

“It is crucial that the industry remains alive to these developments and continues to offer customers the flexibility and security they are after.”


Business people or doctor talking to customer and using laptop at office room.

Canada Life launches customer hub

Canada Life Home Finance has announced the launch of a customer hub. The hub provides existing customers with information on decision making after the completion of the mortgage application, according to the firm. In addition, the service provides data on additional borrowing, as well as making capital and interest payments. The firm adds that the […]

Canada Life adds to equity release range

Canada Life has launched a new equity release product with greater flexibility for borrowers. Capital Select Lite is the latest option in the Capital Select range. The new Lite option has an annual interest rate of 3.86 per cent, compared with 4.35 per cent for Capital Select Gold. The range allows customers to make payments […]


Canada Life to buy Retirement Advantage

Canada Life has announced it will buy Retirement Advantage. Canada Life did not say how much it paid for the pension and equity release specialist, which has over £2bn in assets under management. The deal allows Canada Life to expand into offering equity release mortgages. The company said it also “reaffirms [Canada Life’s] commitment to […]

landlord, BTL, words

Cost of buy-to-let loans squeezed

Mortgage costs in the buy-to-let market have started to fall over the last quarter, according to new data from Mortgage Brain. Its quarterly figures show the cost of a two-year buy-to-let tracker (at 60 per cent LTV) is now 3 per cent lower than it was three months ago.  Higher LTV deals have also reduced […]

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Pensions: trouble ahead?

The pace of change in the pension’s space has been little short of astonishing, and has left thousands of employers struggling to keep their pension policy compliant, and also on the right side of current best practice and governance. Many employers, and indeed many in the pensions industry itself, would like to see a period of no change during the next term of government. This would give all sides a chance to catch up and draw breath. 


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