More than half (54%) of OneFamily’s customers are now taking advantage of an interest payment lifetime mortgage.
By enabling homeowners to pay off the interest, the mortgage addresses one of homeowners’ biggest concerns that capital will be eroded in their property.
Now over 50% of mortgages taken out at OneFamily are where the interest is actively managed.
Nici Audhlam-Gardiner, managing director of lifetime mortgages at OneFamily, said: “The lifetime mortgage market is growing and attracting a diverse group of clients who want products to suit different needs.
“At OneFamily we want to help advisers support the changing demographics of lifetime mortgage clients and we aim to make our products as flexible as possible.
“Our interest payment products attract those homeowners who have a regular income from pensions and other savings but require a lump sum.
“They can afford, and would prefer to make interest payments than have the interest roll-up. In some cases, the homeowner themselves pays the interest, and in other cases, other family members who may have benefited from the lump sum, such as for a deposit on a first home, pay for it on behalf of the homeowner enabling wealth to be shared across the family.
“These different ways of taking advantage of the capital in your property show the innovative ways lifetime mortgages can be used and with providers like us coming to the market with new products, homeowners over 55s should increasingly consider how they can use equity release to fund their lifestyle.”
The product is particularly suitable for homeowners who have a monthly income but are looking to access a lump sum from their property, whilst retaining the capital in their home.
If a homeowner takes out a OneFamily interest payment lifetime mortgage for a loan of £78,000 at the age of 68, if they die at 82 with a fixed interest rate of 5%, they would need to pay £325 a month to leave only the original loan amount to be paid.