Canada Life has reduced the rates on six of its lifetime mortgage products.
Four of the six have already seen rate cuts earlier this year, including the Interest Select Gold and Voluntary Select Gold offerings and have been cut by a further 25 bps.
The Lifestyle Lite and Lifestyle Gold product rates are being reduced by an average of 70bps.
Alice Watson (pictured), 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.”
Products in the Interest Select Options range allow customers to pay between 50 and 100% of the total interest each month.
The Voluntary Select Options product range allows customers to make voluntary payments of up to 15% of the initial loan amount each year with no ERC.
The Lifestyle Options range offers customers a tax-free, one-off initial cash advance.
Any interest on the loan is added to the mortgage balance each month.
Watson added: “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.
“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.”