The OneFamily Lump Sum Lite scheme is a roll-up lifetime mortgage plan that offers the lowest interest rate from the whole suite of OneFamily schemes. OneFamily’s Lump Sum Lite equity release plan provides a one-off tax-free capital amount which can be spent on anything the applicant wishes.
The main focus of this product is the headline interest rate which brings equity release interest rates in line with residential mortgages. For the first time in the equity release market, homeowners have the benefit of choosing between fixed or variable interest rates, depending on their preferences. The introduction of the OneFamily variable interest rate equity release product is a significant leap forward for the equity release industry, offering greater choice to the consumer.
The Lump Sum Lite interest rate is calculated by utilising a base interest rate (collar). OneFamily take the annualised Consumer Price Index (CPI) figure every September & add this to the collared base interest rate every December. The sum of these two figures gives us the interest rate that will be charged for the following 12 months, effectively giving a one-year reviewable fixed rate. To counter any run-away interest rates, OneFamily provide an interest rate cap, which means an upper interest rate limit is applied to the scheme. This provides a guarantee of the maximum interest rate that OneFamily can ever go upto for the lifetime of the plan. For the latest capped & collared Lump Sum Lite interest rates contact Equity Release Supermarket on 0800 802 1051.
The Lump Sum Lite plan differs from the Lump Sum Standard scheme by having lower loan-to-value percentages at any given age. This results in lower maximum loan amounts on the Lite range of plans, but their advantage is that they do benefit from lower interest rates. The OneFamily Lump Sum Lite range start at age 55 with maximum loan-to-value percentages of 15% for joint lives & 16% for a single life.
OneFamily are members of the Equity Release Council and subsequently all their plans on both fixed & variable rates come with the security of the No Negative Equity Guarantee, ensuring beneficiaries never end up owing more than the value of the property & subsequently they themselves owe nothing to the lender.
A beneficial fixture of the OneFamily Lump Sum Lite Plan is the inclusion of the Downsizing Protection feature. This allows anyone downsizing after a period of 5 years to be able to repay their OneFamily equity release plan in full, with NO early repayment charges. If downsizing occurs within the first 5 years, then the standard fixed early repayment penalties would apply.
Another strong feature of the Lump Sum Interest Roll-Up Lifetime Mortgages is the fixed early repayment charges (ERC). OneFamily only charge an ERC for the first 10 years following the commencement date of the equity release loan. The ERC starts at 6% for the first 5 years, then reduces to 3% for the next 5 years and then NO penalty thereafter.