Canada Life has made rate and LTV changes across all of its Capital Select Options.
The Super Lite, Lite, Gold, Gold Plus, Platinum and Platinum Plus products in the Capital Select Options range now have enhanced interest rates, with improvements between 20-76ps.
Additionally, the loan-to-value (LTV) for Super Lite, Lite and Gold products have increased by seven percentage points, with the LTV for the Gold Plus product improving by five percentage points and the LTV for the Platinum and Platinum Plus products improving by one percentage point to 54% at age 80.
The rate changes now mean that the annualised interest rate (AER) for a Capital Select product has fallen below 3%, with the AER of the Super Lite product at 2.99%. Meanwhile, the largest reduction in AER across the Capital Select range (76bps) sees the AER for the Gold product at 3.59%. The Capital Select range also offers a £0 completion fee until 31st December 2019.
Canada Life’s Capital Select Options range allows customers to borrow up to £1 million against their property and make payments from £50 to a maximum of 10% of the initial loan amount each year without incurring an early repayment charge (ERC). Payments can also be made as frequently as customers wish.
Alice Watson, head of marketing and communications at Canada Life Home Finance, said: “We are pleased to announce these enhancements to one of our most popular products. The flexibility and certainty offered by the Capital Select Options range gives customers peace of mind, whilst the cashback option is a means of support that can be put towards legal and adviser fees.
“Continued market innovation that delivers what customers want is key to bringing equity release into mainstream financial planning. These rate enhancements demonstrate that Canada Life is committed to meeting the needs of customers in the later life lending market.”
All Canada Life Lifetime Mortgage products come with optional inheritance guarantee protection and have a no negative equity guarantee.