Canada Life has announced a number of changes to its Capital Select range, including the introduction of a new product, Super Lite, the addition of a cashback option across the entire range, and enhanced interest rates and loan-to-values (LTVs) for some of the products.
The changes by Canada Life offer customers greater flexibility across the entire Capital Select range. The Super Lite product has a monthly interest rate (MER) of 3.21% and an annualised interest rate (AER) of 3.26%. The addition of the cashback option means borrowers are eligible to receive a lump sum of 3 percent of the value of their initial loan, which Canada Life believes will prove valuable help in paying legal and adviser fees.
Canada Life’s Capital Select Options range allows customers to borrow up to £1 million against their property, and make payments from as little as £50 to a maximum of 10 percent of the initial loan amount each year without incurring an early repayment charge (ERC). Payments can be made as frequently as customers wish, offering additional flexibility and peace of mind.
The Capital Select range offers a £0 completion fee until 27th September, as well as free valuations.
Alice Watson, head of marketing and communications at Canada Life Home Finance, said:
“Canada Life is committed to meeting the needs of customers in the later life lending market, and these enhancements are the latest evidence of this. By adding ways to increase the flexibility in our lifetime mortgages we aim to give customers greater control of how they access the equity tied up in their homes.
“As the profile of retirement income continues to evolve, it’s important that lifetime mortgage products are tailored to meet the needs of the growing and increasingly diverse customer base. Continued market innovation has seen the number of later life lending products more than double in the space of a year, but to ensure further market growth, we must continue to put customer needs at the heart of what we do.”
All Canada Life Lifetime Mortgage products come with optional inheritance guarantee protection and have a no negative equity guarantee. There is no penalty in the event that the offered facilities to repay the loans are not used.