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OneFamily launches lifetime mortgage with market-leading LTV

Posted in: Products

OneFamily is launching a market-leading super loan-to-value (LTV) lifetime mortgage[i].

The new lifetime mortgage will enable homeowners in England and Wales, over the age of 65, to release up to 58% of the value of their property. The product will offer the highest LTV available in the equity release marketplace.

The Super LTV Lifetime Mortgage features some the most popular elements of OneFamily’s lifetime mortgages, such as giving borrowers the ability to borrow up to £1 million and allowing them to make voluntary repayments of up to 10% of the initial loan amount each year, as well as direct access to OneFamily team of fully qualified underwriters who assess each loan application on an individual basis.

It also features a sliding scale for early repayment charges (ERCs) for the first eight years of the loan, after which no ERCs will apply. The charges are amongst the best in the market. Years one to three are charged at 6%, year four at 5%, year five at 4%, year six at 3%, year seven at 2% and year eight at 1%. The fixed percentages make it easy for homeowners to understand the cost of closing the loan early.

The new lifetime mortgage helps advisers meet the needs of a new group of customers who want to access a larger amount of capital to meet their own retirement needs or to optimise the support they can provide to the next generation.

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

“The lifetime mortgage market is expected to surpass £5 billion in 2019[i], up by over a billion from 2018 and the growth shows no signs of abating. As it continues to grow so does the need for new innovative products that support this growth, and the changing needs of homeowners seeking equity release.

“Our new Super LTV Lifetime Mortgage opens up the market for advisers, offering greater flexibility and choice, whilst maintaining the bespoke service aspects that set OneFamily apart from other providers.

“Our new funding partner we have worked with to develop this product is a large US investment business, and this is the first time that the sector has attracted an investor of this type. This is a true innovation and an industry first. Attracting a prestigious US investor also demonstrates the growing attraction of the equity release market to investors.”

For more information visit: OneFamily Adviser

[i] For customers aged 65-100 with a Lump Sum Lifetime Mortgage in England and Wales. Based on iPipeline’s Equity Release service as at 26/02/2019. Excludes enhanced/impaired lives.
[i] Equity Release Schemes UK, May 2018