OneFamily is extending its 2-year fixed lifetime mortgage rate for an additional year until December 2021.
The 2-year fixed lifetime mortgage is available on both OneFamily’s interest roll-up with voluntary payment option.
This means that homeowners can make payments of up to 10% of the initial loan balance each year, with no early repayment charges and on its interest payment mortgage, which allows customers to pay off up to 100% of the interest on their loan.
Nici Audhlam-Gardiner, managing director of lifetime mortgages at OneFamily, said: “The 2-year fixed rate provides advisers a new opportunity for their clients who prefer variable products but want some protection while CPI rates are higher.
“Already the offer has opened up the market to a wealthier group of homeowners, with the average loan amount taken exceeding £129,000, on properties worth on average over £550,000. By comparison, the average equity release market loan and property value, currently stand at £96,000 and £350,000 for lump sum plans.
“Some of the top reasons for customers to take a variable lifetime mortgage are to give money to loved ones or to make home and garden improvements.”
After the two years on the fixed rate the mortgage will move to a Consumer Price Index (CPI) linked variable rate.