Canada Life has reduced rates on three of the products in its Lifestyle Options range.

The Lite, Gold and Gold Plus products in the Lifestyle Options range now have lower interest rates, with reductions of between 27 and 79 bps made across the three products.

The rate changes mean that the annualised interest rate (AER) for the Lifestyle Lite product has now dropped to 3.12%. The largest reduction is for the Gold Plus, where the AER rate has dropped from 5.59% to 4.80%.

Canada Life’s Lifestyle Options range allows customers to borrow up to £1 million against their property. It offers customers a tax-free, one-off initial cash advance, with interest on the loan rolled up and added to the mortgage balance each month.

All Canada Life lifetime mortgage products come with optional inheritance guarantee protection and have a no negative equity guarantee.

Alice Watson, head of marketing, insurance, Canada Life, said: “We’re pleased to announce a series of interest rate reductions on one of our lifetime mortgage product ranges. The changes apply to products in our Lifestyle Options range, which are particularly popular with people looking for a low interest rate or a high LTV.

“As with all our lifetime mortgage products, the Lifestyle Options range allows people to continue living in their homes, whilst releasing the money tied up in their property. This unlocked capital can boost retirement pots, pay for home improvements or even fund a holiday.”