Canada Life improves equity release offering

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Canada Life has made changes to all its Capital Select Options for home finance customers.

Interest rates for its Super Lite and Platinum options will be reduced by 10bps. Canada Life is also increasing the LTVs on these products, ranging from a 0.5% rise for Platinum Plus to a 2.0% increase for Gold Plus.

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. Payments can be made as frequently as customers wish.

In addition to these changes, Canada Life is also reducing interest rates across its Lifestyle range, with  Lifestyle Lite dropping by 10bps to its lowest ever rate at 2.55% MER (2.58% AER).

Canada Life’s Lifestyle Options are interest roll-up lifetime mortgages, allowing customers to unlock a one-off, tax-free payment from their home with no monthly payments.

Alice Watson (pictured), head of marketing, insurance, Canada Life, said: “Given the events of the last six months, we’re pleased to be able to make these enhancements to both our Capital Select and Lifestyle Options.

“Customers need flexibility and certainty now more than ever before, and these products allow them to continue living in their homes, while releasing the money tied up in their property, whether that be to cover any unexpected costs, boost their retirement income or even fund home improvements.”

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