OneFamily launches super lifetime mortgage

Michael Lloyd

March 18, 2019

OneFamily has launched a ‘super’ loan-to-value (LTV) lifetime mortgage, offering the highest LTV available in the equity release market.

The lifetime mortgage will enable homeowners in England and Wales over the age of 65 to release up to 58% of the value of their property.

Nici Audhlam-Gardiner, managing director of OneFamily Lifetime Mortgages, said: “The lifetime mortgage market is expected to surpass £5bn in 2019, up by over a billion from 2018 and the growth shows no signs of abating.

“As it continues to grow so does the need for new innovative products that support this growth, and the changing needs of homeowners seeking equity release.

“Our new ‘super’ LTV lifetime mortgage opens up the market for advisers, offering greater flexibility and choice, whilst maintaining the bespoke service aspects that set OneFamily apart from other providers.

“The market is still continuing to increase and that’s not surprising because of the underlying need for customers will only get bigger.

“That makes us confident that the number of these innovative products meeting particular needs in the market will grow and thrive. This super lifetime mortgage is a real need we’ve researched and I’m confident it’ll perform well.

“Our new funding partner we have worked with to develop this product is a large US investment business, and this is the first time that the sector has attracted an investor of this type. This is a true innovation and an industry first.

“Attracting a prestigious US investor also demonstrates the growing attraction of the equity release market to investors. This new funder has appetites to explore the market so once it’s established in the market you may see us launching more products.

“The need is there so I don’t think things like Brexit will have same dent in confidence as in the mainstream market where people are worried about moving house and property values.”

The ‘super’ LTV lifetime mortgage features some the most popular elements of OneFamily’s lifetime mortgages, such as giving borrowers the ability to borrow up to £1m and allowing them to make voluntary repayments of up to 10% of the initial loan amount each year.

There will also be direct access to OneFamily’s team of fully qualified underwriters who assess each loan application on an individual basis.

It also features a sliding scale for early repayment charges (ERCs) for the first eight years of the loan, after which no ERCs will apply. Years one to three are charged at 6%, year four at 5%, year five at 4%, year six at 3%, year seven at 2% and year eight at 1%.

OneFamily said the fixed percentages make it easy for homeowners to understand the cost of closing the loan early.

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