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 in excess of £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 inaugural 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 are the first equity release lender to offer a variable interest rate product, linked to the Consumer Price Index (CPI) with addition of a fixed rate option 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 Roll-up Lifetime Mortgage plan offers homeowners a simple one-off lump sum cash payment to spend as they wish. This product is maybe geared towards homeowners looking for interest rates at the lower end of the spectrum, but not wishing to make repayments & happy to see the interest roll-up
. This product maybe ideal for those with mortgages at or near retirement which are in need of repayment, but have no exit strategy in place. Additionally, we can see the product being used as part of IHT mitigation exercises.
OneFamily Equity Release will accept applications on property values with a minimum of £70,000 and no maximum 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 Roll-Up 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 £500,000. Please call 0800 678 5955
for your personalised OneFamily Key Facts Illustration.
The OneFamily Lump Sum Standard Fixed Rate scheme is a roll-up lifetime mortgage plan that offers a fixed interest rate secured for the lifetime of the mortgage. This provides a future balance guarantee assuming no future additional borrowing requests. OneFamily’s Lump Sum Standard equity release plan
provides a one-off tax-free capital amount which can be spent on anything the applicant wishes.
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 fixed interest rate equity release product provides greater security for the homeowner in knowing that whatever interest rates do elsewhere, the rate applicable to their plan will remain fixed for life, offering greater confidence to the consumer and their beneficiaries.
The Lump Sum Standard plan differs from the Lump Sum Lite scheme by having higher loan-to-value percentages at any given age. This results in higher maximum loan amounts on the Standard range of plans, with higher interest rates as a consequence. The OneFamily Lump Sum Standard range start at age 55 with maximum loan-to-value percentages of 20% for joint lives & 21% 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 Standard 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 fixed early repayment charges (ERC). OneFamily only charge an early repayment charge for the first 10 years following the commencement date of the equity release loan. The ERC’s start at 6% for the first 5 years, then reduce to 3% for the next 5 years and then NO penalty thereafter.
The OneFamily Standard equity release plan has no voluntary repayment facility, however partial repayments are permissible, subject to a minimum of £1,000 and at least £10,000 balance remaining in place. Any repayments on this basis could potentially be liable to an early repayment charge dependent upon which year the repayment is made (see later).
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 Standard Lifetime Mortgage plan
, please contact the Equity Release Supermarket team on 0800 678 5955