OneFamily has enhanced its Interest Roll Up Lifetime Mortgage meaning customers can roll the interest up and pay nothing, or they can now pay it off as and when they want.
This reflects OneFamily’s innovative approach in the lifetime mortgage market and means that all new customers will be able to manage the growth of interest on their loan, either through regular payments or, via this enhancement, through individual payments up to 10% of the original loan amount.
Customers are seeking increasing flexibility in their later life finances and this enhancement to OneFamily’s lifetime mortgages provides this benefit, with no extra charge.
Half (54%) of the lifetime mortgages taken with OneFamily are already used by homeowners who pay off interest. Of these existing customers, over a third (38%) pay off both some of the capital and interest (max of 10% of the original loan value) each year and one in five (16%) choose to pay off up to 100% of the interest. This demonstrates that the majority of customers would prefer to have the option to pay off interest.
Nici Audhlam-Gardiner, Managing Director of Lifetime Mortgages commented:
“By giving our customers the option to pay off the interest on their loan we are giving them increased flexibility. We know that our customers’ financial circumstances change, and we want our products to be able to flex with their needs. For example, we’ve seen cases where customers have been left an inheritance by a friend or older family member, and they want to be able to make a payment on their loan. This new approach helps with this situation.
“All new OneFamily customers now have the option to pay off interest at any time on their lifetime mortgage. One benefit of this is maximising the amount of equity left in their property for an inheritance.
“Interest payments can be made monthly with our interest payment product. Alternatively, up to 10% of the initial loan amount can be paid back each year, as part of the new, enhanced feature on our Interest Roll-up product.”
OneFamily’s lifetime mortgage range is available on either a fixed, two year fixed or variable rate basis.
To find out more about OneFamily’s lifetime mortgages visit: onefamily.com/lifetime-mortgages/