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OneFamily enhances variable rate lifetime mortgages

Posted in: Products

OneFamily has made several enhancements its two-year fixed and variable rate lifetime mortgages. The changes include lower early redemption charges, an increased maximum loan amount and a reduction in interest rates.

Customers will now pay no early redemption charges after eight years, reflecting the increased flexibility that homeowners using equity release are seeking. If customers choose to pay the mortgage back prior to this, they will pay a small percentage of the outstanding loan on a sliding scale from 6% in year one to just 1% in year eight.

The maximum loan amount has increased to £1 million following increased interest from homeowners of properties worth in excess of £2 million.

OneFamily has also reduced interest rates for Lite LTV Lifetime Mortgages, which will move to a 3.55% rate from 3.90%. The variable rate margin will also reduce to 2.30% MER from 2.50%.

Nici Audhlam-Gardiner, Managing Director of Lifetime Mortgages at OneFamily comments,

“We regularly review our products to ensure we are competitive and these changes enhance our variable and two-year fixed propositions. We’ve also recently enhanced our fixed rate products as we continue to innovate our later life lending options.”

OneFamily offers an interest roll-up mortgage with a voluntary payment option, which allows consumers to pay off up to 10% of the initial loan balance each year, with no early repayment charges. Alternatively, customers can take an interest payment mortgage which allows up to 100% of the interest to be paid off each month.

To find out more about OneFamily’s Lifetime Mortgages, advisers can visit:

www.onefamilyadviser.com/lifetime-mortgages

For consumers: OneFamily lifetime mortgages