These materials are intended for use by Financial Advisers only

OneFamily Adviser

It’s time to bust these later life lending myths

Equity release is becoming more popular, but according to our survey there are still some pervasive myths out there...

The myths

We asked 215 advisers about their clients’ understanding of their retirement funding options, with most stating that most of their clients thought they couldn’t pay off a lifetime mortgage early or make payments to reduce the size of the loan.

Advisers said most of their clients thought it meant they could end up in negative equity and were unable to sell their home.

None of which are true.

Clients who believe that with a lifetime mortgage they:

  • Can't switch provider 44%
  • Can't pay it off early or move it 51%
  • Can't make payments towards the loan 62%
  • Can't sell their home 66%
  • Could end up in negative equity 71%
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OneFamily research, 2019

It’s important that people are well-informed about their financial options in retirement. As an industry these are myths we need to bust.

“This research shows there is a lot of misunderstanding in the later life lending market and demonstarates the value of taking financial advice.”

“OneFamily supports advisers in helping customers identify the right solution for funding their retirement, with a range of lifetime mortgage products and payment options.”- Nici Audhlam-Gardiner, Managing Director of Lifetime Mortgages at OneFamily

Advice is important

Even when a customer thinks they know what they want, advisers still have a crucial role to play. According to our survey, 25% of over 55s taking later life funding advice had an idea about the financial solution they sought, but 55% of them changed their mind following advice.

Over 55s taking later life funding advice:

  • Have some idea of the financial solution they need 25%
  • Can't pay it off early or move it 55%
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OneFamily research, 2019

Help your customers understand their options. Talk to us. Our team of specialists will be happy to help answer your questions and explain the range of products on offer.

A versatile solution

People use equity release for all sorts of reasons.

According to Key Retirement the top reasons to use equity release are to pay for home and garden improvements, to pay for holidays, to pay off debts, to give gifts, to clear outstanding mortgages and to help with bills.

Top reasons to use equity release:

  • Help with bills 10%
  • Clear outstanding mortgage 20%
  • Gifts 28%
  • Debts 30%
  • Holidays 32%
  • Home and garden improvements 64%
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Key, 2019

Our Voluntary Payment Lifetime Mortgage means your clients can pay back the interest on their loan and manage the total amount owed, while our Interest Roll-Up Lifetime Mortgage means they can release equity without having to make any repayments throughout the term of the loan.

Find out more about our whole range of lifetime mortgages here.

Let’s work together

“As the lifetime mortgage market continues to grow, so will the variety of homeowners and their needs. As provides we play a vital role in helping over 55s get a complete picture of their retirement funding options.”- Nici Audhlam-Gardiner, Managing Director of Lifetime Mortgages at OneFamily

We want to work with you to understand what will work for your clients and their unique properties. Our products are fairly priced, flexible and suit a broad range of retirement borrowing needs. We assess each case individually and you can even have direct access to our underwriters.

OneFamily Lifetime Mortgages

Find out more about helping your customers with a OneFamily Lifetime Mortgage...

View our Lifetime Mortgage Products