Canada Life Home Finance has unveiled Capital Select Options, a new product range which aims to give homeowners access to additional flexibility and certainty in their mortgage.
The range enables customers to make payments of between £50 up to a maximum of 10% of the initial loan amount each year without incurring an early repayment charge (ERC).
The launch of the range is one of Canada Life’s first moves in the lifetime mortgage market since it acquired Retirement Advantage in January.
The product range is designed to meet changing needs of lifetime mortgage customers, including those concerned about rolled-up interest reducing the equity in their home, or homeowners over 55 who require a lump sum but are still receiving an income.
It features an early repayment waiver if after three years the first borrower dies or goes into long term care and no ERC if the customer wants to downsize. In addition to this, if borrowers wish to repay their mortgage ERCs are only fixed for the first eight years.
Greater flexibility is also available when it comes to how people can access their money. By adding a Cash Reserve Facility to the mortgage, homeowners can take the available funds when they need them, accruing interest only for the amounts they have drawn down.
The new features are available immediately on Capital Select Gold, Gold Plus and Platinum products.
Alice Watson, head of marketing and communications at Canada Life Home Finance, said: “These new options demonstrate our commitment to being a leading provider which is tuned into the needs of the market and responding with innovation. By adding ways to increase the flexibility in our lifetime mortgages we aim to give customers greater control of how, when and if they repay their loans. The choices can be made by the customer and their adviser.
“Although people borrow at a certain point in time, lives change. Circumstances change. As a leading company in this market we have a responsibility to ensure that we give people as much control of their financial lives and decisions as possible.”