OneFamily has changed its lifetime mortgage criteria so customers have the option of paying off interest as and when they like.
The change means customers can either roll the loan up, manage their loan with regulator payments or make individual payments of up to 10% of the loan amount.
Nici Audhlam-Gardiner, managing director of lifetime mortgages, said: “By giving our customers the option to pay off the interest on their loan we are giving them increased flexibility.
“We know that our customers’ financial circumstances change, and we want our products to be able to flex with their needs.
“For example, we’ve seen cases where customers have been left an inheritance by a friend or older family member, and they want to be able to make a payment on their loan. This new approach helps with this situation.
“All new OneFamily customers now have the option to pay off interest at any time on their lifetime mortgage. One benefit of this is maximising the amount of equity left in their property for an inheritance.
“Interest payments can be made monthly with our interest payment product. Alternatively, up to 10% of the initial loan amount can be paid back each year, as part of the new, enhanced feature on our interest roll-up product.”