These materials are intended for use by Financial Advisers only

OneFamily Adviser

2-year Fixed Rate Lifetime Mortgages

  • A rate fixed for two years followed by a rate that tracks CPI for the remaining term
  • Free valuation with each mortgage, for properties worth up to £1m
  • All products comply with Equity Release Council Standards
  • Available on an Interest Roll-up with Voluntary Payment option or an Interest Payment basis

At a glance

The 2-year Fixed is a lifetime mortgage which provides your customer a one-off lump sum at an initial fixed rate of interest which will revert to a variable rate.

The product has an initial fixed rate of interest until 30 November 2021. On 1 December 2021 the product will revert to a variable rate based on the Consumer Price Index (CPI).

It is available on either an Interest Roll-up with Voluntary Payment option or an Interest Payment basis.

Our 2-year Fixed rate lifetime mortgages come in two loan-to-value (LTV) levels: Lite and Standard .

Equity Release Council Logo

Who could it be suitable for?

Lifetime Mortgages are suitable for customers for:

  • Paying off an existing mortgage or unsecured debts
  • Helping a family member with a deposit for a house purchase
  • Home improvements
  • Supplementing their retirement income

A 2-year Fixed rate lifetime mortgage may be suitable for:

  • Customers who are accustomed to index linked products and are prepared to take the risk that other types of interest rates could cost them less in the longer term.
  • For more information, please read our At a Glance guides.

Key features

Interest Roll-up with Voluntary payment options Interest Payment
Interest Variable – The 2-year Fixed rate product has a fixed rate of interest until 30 November 2021. On 1 December 2021 the product will revert to a variable rate based on the Consumer Price Index (CPI).
Payment Interest is rolled-up and no payments are due. Voluntary payments are permitted up to a maximum limit of 10% of the initial loan amount. Interest is paid monthly and the amount is determined at the outset - a minimum of £25 up to 100% of the monthly interest payable.
Interest Rates Please see our Interest Rate sheet for the latest product rates.
The CPI as published on the ONS website for September each year is applied to our Variable and 2-year Fixed rate lifetime mortgages in December each year.
LTVs available Lite and Standard. Please see our LTV table for further information.
Minimum – Maximum loan amount £20,000 - £1 million
Minimum – Maximum age at completion 55 - 70
Property Location England, Wales & Scotland
Early Repayment Charges (ERC) Fixed over 8 years at: 6%, 6%, 6%, 5%, 4%, 3%, 2%, 1% of the initial loan amount. No charge after year 8. Please see our guide to ERCs.
Downsizing Protection Yes, no ERC payable if after five years, your customer repays the loan as a result of selling their home and moving to a different property.
No Negative Equity Guarantee Yes Yes

2-year Fixed Rate Product Support

Click below to find our sales support tools for our Lifetime Mortgage products and how they can benefit your clients.

Lifetime Mortgage Calculator

Use our interactive calculator to show your customer the maximum loan amount they could be eligible for (based on our Standard LTVs).

 

Calculate

Log in or register to access our portals

Other Lifetime Mortgage Products 

Fixed Rate Lifetime Mortgage

This lifetime mortgage provides a one-off lump sum at a fixed rate of interest.

Find out more

Variable Rate Lifetime Mortgage

This lifetime mortgage provides a one-off lump sum at a variable rate of interest.

Find out more