Canada Life has made rate reductions on its Capital Select Options range, starting at 3.09% annual equivalent rate (AER) for its Capital Select Super Lite.

The Capital Select Options range allows customers to borrow up to £1m against their property and make payments from as little as £50 to a maximum of 10% of the initial loan amount each year without incurring an early repayment charge (ERC).

With reductions of between 40 and 60 bps, the rates on the Capital Select products are now as follows: Capital Select Super Lite – reduced by 0.50% to 2.09%; Capital Select Lite – reduced by 0.60% to 2.39%; Capital Select Gold – reduced by 0.40% to 3.79%; Capital Select Gold Plus – reduced by 0.60% to 4.39%; Capital Select Platinum – reduced by 0.50% to 4.99%; and Capital Select Platinum Plus – reduced by 0.46% to 5.99%.

UK houses

Equity available in UK homes reaches £500bn

Canada Life has also increased loan-to-values (LTVs) across these products; reaching 28% at age 70 for its Capital Select Super Lite, the changes range from 4% to 2.5%.

In addition to these changes, Canada Life is reducing interest rates across its Lifestyle Lite and Gold Options by 16 and 13 bps respectively, bringing the Lifestyle Lite Option down to 2.68% AER and Lifestyle Gold to 3.04% AER.

Alice Watson (pictured), head of marketing, insurance at Canada Life, said: “We’re pleased to announce a series of changes to our Capital Select Options – one of our lifetime mortgage product ranges – as well as our Lifestyle Options.

“The flexibility and certainty offered by the Capital Select Options range gives customers real peace of mind, while the cashback option is a means of support that can be put towards legal and adviser fees.

“Meanwhile, our Lifestyle Options are particularly popular with people who do not want to make regular repayments.

“As with all our lifetime mortgage products, both of these ranges allow people to continue living in their homes, while releasing the money tied up in their property.

“The potential unlocked capital can help retirement plans, pay for home improvements or even help fund lifestyles.”