Canada Life has reduced the rates on six of its lifetime mortgage products.

Four products that already saw rate cuts earlier this year – Interest Select Gold, Interest Select Platinum, Voluntary Select Gold and Voluntary Select Platinum – have had their rates reduced by 25bps, whilst the Lifestyle Lite and Lifestyle Gold products rates are being reduced by an average of 70bps.

Products in the Interest Select Options range give customers the choice to pay between 50% and 100% of the total interest each month, for between five years and the total life of the loan. They also allow customers the opportunity to stop the interest payments and convert the loan to interest roll-up.

The Voluntary Select Options product range allows customers to make voluntary payments of up to 15% of the initial loan amount each year, without incurring an early repayment charge. It offers customers the opportunity to decide when they want to make payments, how much they’d like to pay and how often.

The Lifestyle Options product range offers customers a tax-free, one-off initial cash advance. Any interest on the loan is rolled up and added to the mortgage balance each month.

Alice Watson, head of marketing and communications at Canada Life Home Finance, said: “After initial reductions earlier this year, we have cut the interest rates on our lifetime mortgage options further, as part of Canada Life’s ongoing commitment to providing flexible financing options for retirement and increase the accessibility of our products.

“Our wide range of lifetime mortgage products provide customers with a variety of plans to suit their needs. The Interest Select Options are popular with those who would like to minimise or remove the impact of rolled-up interest, or who would like to leave an inheritance. Unlike traditional mortgages, these options allow customers to pay some or all of their interest on a monthly basis.

“The Voluntary Select Options are popular with customers who would like the greatest amount of flexibility and control over when and how they make interest payments, with no penalties for early repayment. Lifestyle Options are ideal for those who need a lump sum to make a lifestyle or home improvement in retirement, or to pay off an existing mortgage and cannot or choose not to use funds from their pension.”

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