OneFamily is the product of the merger of Family Investments and Engage Mutual in 2015. OneFamily is the trading name of Family Assurance Friendly Society which has more than two million members and the lender manages over £7 billion. OneFamily is breaking into more innovative lending products, as it is most well-known for specialising in Guaranteed Over 50’s Life Cover.
The Interest Payment Standard plan from OneFamily, is an interest only lifetime mortgage scheme that allows the homeowner to receive a one-time 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 enables future balance management.
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 Standard Plan will enable mortgagors to switch away from the residential mortgage market by facilitating this OneFamily interest-only mortgage with a fixed interest rate and a mortgage than runs for the rest of their life.
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 fixed rates possible, but would like the security of knowing what their interest rate will be for the rest of the plan term. They will also wish to make repayments of Interest-Only that will enable them to maintain a level balance leaving greater equity in their property than a traditional roll-up plan.
To qualify the homeowner must be between the ages of 55 and 100 for the OneFamily Interest Payment Standard Lifetime Mortgage. If borrowing jointly, the loan-to-value will be based on the younger applicant’s age.
Properties used with this product must have a valuation of at least £70,000 with OneFamily imposing no maximum threshold. However, any property valued over £2,000,000 must be accompanied by a referral. Please contact us directly on properties valued over £2 million as cases maybe individually underwritten. For a personalised illustration contact Equity Release Supermarket on Freephone 0800 678 5955
The property must be located in England, Scotland or Wales to be eligible.
Available loan amounts range from a minimum equity release loan of £10,000, upto a maximum lump sum of £750,000. The early repayment charges are generously fixed for the first ten years after completion of the advance. For years one to five, the early repayment charge is 6%. For years six to ten, the charge is 3%. If after five years, the homeowner sells the home to move to another property and repays the loan, there is no repayment charge imposed.
The loan can be ported and there is a no negative equity guarantee. This means that if the eventual sale of the property is not enough to cover the outstanding loan balance, the difference is forgiven and loved ones are not held responsible for any payments.
The interest payment amount is fixed at the outset of the loan and can range from anywhere from £25 to the full 100% of the monthly interest accrued. The payment term can be anywhere from one year, to the full lifetime of the loan. However, both the interest payment and the payment term cannot be altered once it has been set up.
The homeowner is allowed to miss a total of three payments with this product. If a fourth payment is missed, the product is switched to either OneFamily’s Lump Sum Interest Roll-up or OneFamily’s Lump Sum Voluntary Repayment Lifetime Mortgage. The interest rate applied will be the rate that was applicable at the time of the original advance.
Homeowners can have contributors help with payments, but the payment must be taken from an account in the name of the borrower. All payments are taken via direct debit starting in the month following completion of the advance.
Valuations are free for properties with values up to £1 million. Valuation fees are imposed above this property value, hence please contact the Equity Release Supermarket team on 0800 678 5955
for the latest valuation fee scale. Any legal fees incurred by the homeowner are the homeowner’s responsibility.
The loan-to-values (LTV’s) for the OneFamily Interest Payment Standard equity release plan start at age 55 with an LTV of 21.0% for single life, and 20.00% for joint life. They go up to ages 85-100 with 50% for both single and joint life. Again, the youngest borrower’s age is used to determine the loan-to-value.
Additional borrowing is an option with this product and is available based on the current lending criteria when applying. The option is available six months after initial completion of the advance. The minimum amount available for additional borrowing is £4,000 and the maximum is the maximum LTV available on the product. It is not an option to switch to a higher LTV product. Similar to the structure of the original product, the homeowner can pay the monthly interest on the additional borrowing.
The OneFamily Interest Payment plans come in both Lite & Standard versions. They differentiate by the LTV’s of each scheme and corresponding interest rate. The Interest Payment Standard plan has higher loan-to-values than the Payment Lite, thus can release as higher maximum lump sum. Consequently, the Interest Payment Standard plan offers a higher interest rate than its counterpart, due to its perceived risk being higher.
This product is most suitable for any homeowner who wants a fixed interest rate, thus surety over the future of their monthly interest-only payments. They may also be concerned about the impact of interest roll-up with their lifetime mortgage product and wish to control its future balance. This is ideal for the homeowner who wants security with the routine of making monthly payments.
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 OneFamily Interest Payment Standard plan provides an excellent equity release solution.
*Free valuation offer on property valuations upto £1 million (pro-rata thereafter) and for limited time only
To obtain further information or to request a quotation on the OneFamily Interest Payment Standard Lifetime Mortgage plan, please contact the Equity Release Supermarket team on 0800 678 5955