OneFamily was formed in 2015 by the merger of Engage Mutual and Family Investments which combined has created one of the largest Mutual organisations in the UK. OneFamily
is a trading name of Family Assurance Friendly Society with over two million members and managing over £7.5 billion of family money. OneFamily see Lifetime Mortgage lending as its natural progression into the retirement arena where it currently specialises in Guaranteed Over 50s Life Cover.
OneFamily have launched their latest interest only lifetime mortgage plans with a plethora of features and options. They are taking a giant leap forward for the equity release industry in further building consumer confidence and competitive products. OneFamily were the first lender to offer variable interest rate products which are linked to the Consumer Price Index (CPI) with addition of fixed rate options too. Choice is important and with this comes a range of flexible features for the homeowner to be able to discuss with their equity release adviser. This is a new bold step for the Equity Release marketplace and effectively brings equity release rates in line with conventional mortgage interest rates.
The OneFamily Interest Payment Lifetime Mortgage plan offers homeowners a simple one-off lump sum cash payment to spend as they wish. This product is geared towards homeowners looking for the lowest rates possible, but also wishing to make repayments of Interest-Only that will enable them to maintain a level balance. 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 Plan will enable such mortgagors to switch away from the residential mortgage market by facilitating this OneFamily interest-only mortgage for the rest of their life.
OneFamily Equity Release will accept applications on property values with a minimum of £70,000 and with NO maximum property valuation. However, please contact us directly on properties valued over £2 million as cases maybe individually underwritten, with bespoke quotes via Equity Release Supermarket – 0800 678 5955
. The property concerned must be the main residence and needs to be located within England, Wales or Scotland. It needs to be either freehold or leasehold status which has an unexpired term of at least 155 years minus the age of the youngest applicant, or 75 years whichever is the greater.
This OneFamily Interest Payment Equity Release plan is available on both a single & joint life basis. The minimum age of the youngest applicant must be 55, with a maximum age at entry of 100 years.
The minimum loan amount OneFamily will accept is £10,000 with a maximum release currently of £750,000.
Please call 0800 678 5955
for your personalised OneFamily Key Facts Illustration.
The OneFamily Interest Payment Lite scheme is an interest only lifetime mortgage plan that offers the lowest interest rate from the whole suite of OneFamily schemes. OneFamily’s Interest Payment 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 ability to make monthly payments of interest only, without the need to prove income in support of the mortgage borrowings. The lender simply uses age & property value to determine the maximum loan size permitted, unlike a conventional mortgage & the issues these bring at, or in retirement. Additionally, the homeowner can choose how much of the interest they actually wish to pay. They can be fixed at anywhere between £25pm & 100% of the interest charged to suit budget.
The headline interest rate 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 Interest Payment 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 678 5955
The Interest Payment Lite plan differs from the Interest Payment 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 Interest Payment 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 Interest Payment 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 Interest Payment 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.
The OneFamily Interest Payment plan provides the option to cease monthly payments at any time in the future without the worry of repossession. Once four payments have been missed, which don’t necessarily have to be consecutive, the plan will automatically be switched to either the equivalent Lump Sum or Voluntary Payment plans.
OneFamily allow contributors to fund the Interest Payment plan, however the direct debit payments must still come from an account in the name of the homeowner. This situation may arise, where the Interest Payment plan is used by parents assisting their children, by using the lump sum generated as their house deposit. The children service this OneFamily loan as well as obtaining the remainder of the residential mortgage elsewhere, but usually on better terms due to the initial deposit gifted.
OneFamily permit additional borrowing in the future should further equity be required to be withdrawn for personal use. This is available after 6 months from inception of the initial advance and will be subject to underwriting guidelines at that time. Switching to an alternative product is not available, unless completely remortgaging the plan.
*Free valuation offer on property valuations upto £1m (pro-rata thereafter) & for limited time only
To obtain further information or to request a quotation on the OneFamily Lump Sum Lite Lifetime Mortgage plan, please contact the Equity Release Supermarket team on 0800 678 5955