Canada Life has reduced the rates of three products in its lifestyle options range.
The range allows customers to borrow up to £1m 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.
The lite, gold and gold plus products in the lifestyle options range have seen reductions of between 0.27% and 0.79% made across the three products.
Alice Watson (pictured), head of marketing – insurance at 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.”
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 been cut from 5.59% to 4.80%.