Flexible interest a market first from OneFamily with new Lifetime Mortgages

Posted in: Corporate

OneFamily has brought further new and unique features to the lifetime mortgage market with two new flexible interest-paying products, bringing its Lifetime Mortgage range to six.

The latest innovations from OneFamily mean that consumers will be able to choose how much interest they want to pay, and for how long.  They can also opt for a fixed or a variable interest rate.

Lifetime mortgages can often be taken out by parents or grandparents looking to raise the money for deposits on houses for children and grandchildren.  The mutual has said that it will work flexibly across the generations to help families achieve their financial goals.

The new products include:

Lump Sum Interest Payment Lifetime Mortgage – Variable Interest Rate

Lite LTV Standard LTV
Interest rate MER (current)  3.50%  3.70%
Interest rate AER (current)  3.56%  3.76%

Lump Sum Interest Payment Lifetime Mortgage – Fixed Interest Rate

 Lite LTV  Standard LTV
Interest rate MER (current)  5.18%  5.37%
Interest rate AER (current)  5.30%  5.50%

Note: Rates displayed above correct at time of publishing. You can access the latest interest rates here.

Georgina Smith, OneFamily Managing Director commented:

“Our new products mean consumers can repay up to 100% of the interest on the loan at either a variable or fixed interest rate, in the same way you would with a mainstream interest only mortgage. Obviously with variable interest rates there is the risk that the monthly payments may change in the future.  However, OneFamily have considered this and give consumers the option to fix their maximum monthly interest payment, even if they have a variable interest rate.”

If the consumer chooses to fix their monthly maximum interest rate and if interest rates increase above the agreed figure, any additional interest will be added to the original loan and would be paid back at the end of the term.

Georgina added:

“We have included the option to make payments at a set percentage of the interest due or a set amount, and consumers can also choose to stop making the payments if their circumstances change.  At this point they will have the choice to switch to one of our other Lifetime Mortgages, such as our interest roll-up or voluntary payment products.”

The new products will be added to the approved lenders list of the Mortgage Intelligence network.

Sally Laker of Mortgage Intelligence comments:

“We have been one of the UK’s leading mortgage networks for many years because we strive to offer our brokers intelligent, flexible solutions. By adding OneFamily’s new Lifetime Mortgages to our panel, we are keeping our advisers ahead of the curve and providing them with the best products for their clients.”

The financial mutual was awarded the “Best Provider for Product Innovation” in last month’s Equity Release Awards, ahead of the launch of its new offer.  The Award win confirms the praise for the innovative nature of OneFamily Lifetime Mortgages from industry commentators, when the first products went live back in May.

Simon Markey, OneFamily Chief Executive said:

“OneFamily was created to help families to work together to manage their finances.  Our new products will enable the whole family to come together to decide how best to manage their Lifetime Mortgage, including how the interest payments will be met.”

For more information Lifetime Mortgages Information Page