Canada Life Home Finance has launched a lifetime mortgage range that allows customers to make payments of up to 10% of the initial loan amount each year.
The Capital Select Options 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).
It also 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, if borrowers wish to repay the mortgage, ERCs are only fixed for the first eight years.
The annualised interest for the Capital Select Gold product is 4.35%. This will increase by 0.21 percentage points if the cash reserve option is chosen.
Loan to Value (LTV) amounts for those aged 60 start at 18%, going up to 38% for 80-90 year olds. LTVs reach 48% on Capital Select Platinum.
According to Canada Life, the product range has the flexibility to meet the evolving needs of lifetime mortgage customers, including those concerned about rolled-up interest reducing the equity in their home, or homeowners over the age of 55 who require a lump sum but are still receiving an income.
Alice Watson, head of marketing 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,” she added.
The new features are available immediately on Capital Select Gold, Gold Plus and Platinum products.