Rates now start from 6.06% for a 55 to 64 year old.
It says the rate drop means that it is now the provider with the lowest rate for those under 70.
The new pricing structure is made up of four age bands which it says means that it better takes into account the length of time the borrower will remain a customer.
Along with lower prices across its range of products, Stonehaven is retaining its existing free option to protect a portion of the equity in the property.
Jayne Almond, founder and chief executive of Stonehaven, says: “By introducing tiered interest rates, it means we can now be more competitive amongst the younger age groups.
“We want to wake up homeowners, particularly those considering remortgaging as they approach retirement, to the opportunity and security that a fixed rate lifetime mortgage can provide over traditional mortgages. ”