OneFamily | Interest Payment Lite Fixed Interest Only Plan

Interest Payment Lite

Type Fixed
Rate 5.09%
APR 5.40%

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Incentives:

Free Valuation

Offers:

10-Yr Fixed Early Repayment Charges
Fixed or Variable Rates
Downsizing Protection
Monthly Interest-Only Payments

Background

One Family was formed in 2015 through the merger of Family Investments and Engage Mutual. One Family manages more than £7.5 billion and is a trading name of Family Assurance Friendly Society which has more than two million members. This lender is best known for specialising in Guaranteed Over 50's Life Cover, but now includes lifetime mortgage lending to its portfolio.

The Interest Payment Lite from OneFamily is a lifetime mortgage that allows the homeowner to receive a one-off lump sum payment as part of their equity release scheme. It also allows the homeowner to pay up to 100% of the monthly interest that accrues on the loan for a period of time that can be set by the homeowner.

This product maybe ideal for homeowners with mortgages at, or near retirement which are in need of repayment, but have no repayment strategy in place. The OneFamily Interest Payment Lite Plan will enable such mortgagors to switch away from the residential mortgage market by remortgaging onto this OneFamily interest-only lifetime mortgage.

Eligibility

The OneFamily Interest Payment Lite plan offers homeowners a simple one-off lump sum cash payment to spend as they wish. This product is geared towards homeowners looking for one of the lowest fixed rates available, and would like the security of knowing what their interest rate will be for the lifetime of their plan. They also wish to make repayments of interest-only that will enable them to maintain a level mortgage balance, thus leaving greater equity in their property for themselves, or their beneficiaries.

The qualify the homeowner must be between the ages of 55 and 100 for the OneFamily Interest Payment Lite Lifetime Mortgage. If borrowing jointly, the loan-to-value will be based on the younger applicant’s age.

The minimum loan available on the OneFamily Interest Payment Lite range starts from £20,000 upto a nationwide maximum £1 million release. For loans greater than £1 million, bespoke quotations maybe available via Equity Release Supermarket. Please call the team on 0800 088 5898 for your personalised Key Facts Illustration.

Eligible property values start at £70,000 and have no maximum threshold, though any property valued over £2 million must be accompanied by a referral. The property must be located in England, Scotland or Wales to be eligible. Please contact us directly on properties valued over £2 million as cases maybe individually underwritten, with bespoke quotes via Equity Release Supermarket on Freephone 0800 088 5898.

Features

The OneFamily Interest Payment Lite is an interest-only lifetime mortgage scheme providing an initial tax-free lump sum, with the ability to make a predetermined level of monthly payments to help control the future balance.

Being part of the Interest Payment suite, the only difference between this Lite plan and the Standard version is the amount each will release via their loan-to-value percentages. In essence, the Lite Plan will release a lower loan amount - typically 5% less, however the resultant effect is a lower interest rate than the Standard deal.

The Interest Payment Lite plan accepts monthly interest payments which are fixed from the outset and can range from £25pm, upto 100% of the monthly interest accrued. Payments for the Lite plan are deducted via direct debit starting the month following completion.

Homeowners can pay the interest for a payment term equivalent to one year - all the way up to the lifetime of the loan. However, the payment term, including the amount and duration of the interest payments, cannot be changed once started.

Under the Payment Lite Plan, payments can be made on behalf of the homeowner from an outside contributor, but the payments must be extracted from an account that is in the name of the borrower.

The homeowner is allowed to miss up to a total of four payments over the course of the lifetime of the Interest Payment Lite loan. If the homeowner misses the 4th payment, the loan is converted to a choice of either the OneFamily’s Lump Sum Interest Roll-up plan, or their Lump Sum Voluntary Payment Lifetime Mortgage. The rate that will be applied will be the interest rate that accompanied each product at the time of the original advance.

There is no valuation fee chargeable for properties that are valued up to £1 million. For properties over that threshold, the valuation fee varies dependent upon property value, hence please contact the Equity Release Supermarket team on Freephone 0800 088 5898 for your specific valuation fee charge.

The early repayment charges on the OneFamily Lite Plan are favourably fixed for the first ten years following completion of the advance. These are 6% for years one through five, and then they are 3% for years six to ten. No ERC applies thereafter.

The Payment Lite plan automatically includes a downsizing protection feature, meaning the homeowner can sell the property and repay the loan without incurring any early repayment charge, so long as the sale is at least five years after the initial loan was advanced.

This OneFamily lifetime mortgage is portable as they are members of the Equity Release Council and therefore all their plans come with a no-negative equity guarantee. This means that upon eventual sale of the property, any beneficiaries cannot be left with a debt, over and above the value of the property, owing to the equity release lender.

Options

This OneFamily Interest-Only Lifetime Mortgage enables any homeowner to spend their tax-free cash as they wish and choose to make a level of monthly contribution which befits their affordability levels, and not that of the lenders, as any conventional mortgage would.

Homeowners can choose their level of contribution towards the interest charged by Onefamily of between £25pm and 100% of the interest charged each month. One important feature of OneFamily's Payment Lite Plan is that they do NOT require any evidence of income or affordability, both pre and post retirement age.

With levels of repayment between £25pm and 100% of the interest charged, homeowners can manage the future balance of their Interest Payment Lite Plan. For instance, to facilitate an interest-only basis, thus maintaining a level mortgage balance, the plan would need 100% of the interest to be repaid each month. Even repaying a lower amount monthly would help in reducing the normal effects of roll-up and keep the balance lower than otherwise have been.

There is additional borrowing available with the Interest Payment Lite, approval for which is contingent on the lending criteria imposed at the time of the application. The additional borrowing is available six months after the initial advance is completed. The minimum amount that can be released as additional borrowing is £4,000 and the maximum is the maximum LTV available on the product. Homeowners are not able to switch their product to one with a higher loan-to-value.

Practicalities

The One Family Interest Payment Lite is a good option for any homeowner who is concerned with the impact of the interest roll-up that come with standard roll-up lifetime mortgage products.

This product allows homeowners to pay against the interest accruing on their loan and the homeowner is able to dictate the time period over which they make those payments. Many homeowners are conditioned to make monthly payments and would like to continue in that same vein, in which case the One Family Interest Payment Lite provides an excellent equity release solution.

To obtain further information or to request a quotation on the OneFamily Interest Payment Lite - Fixed Rate Lifetime Mortgage, please contact the Equity Release Supermarket team on Freephone 0800 088 5898 today.

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OneFamily Interest Payment Lite Details (Fixed)

Interest Payment Lite

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