Canada Life has made rate reductions to all its Capital Select Options of between 40 and 60 bps, starting at 3.09% Annual Equivalent Rate (AER) for its Capital Select Super Lite.

It has also increased the LTVs on these products and reducing interest rates across its Lifestyle Lite and Gold Options.

Canada Life is also increasing LTV across these products; hitting 28% at age 70 for its Capital Select Super Lite, the changes range from 4% to 2.5%.

The Capital Select Options range allows customers to borrow up to £1 million 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). Payments can also be made as frequently as customers wish.

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, 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.”