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OneFamily to launch innovative equity release scheme

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
05/10/2016

The new lifetime mortgage will offer flexibility for families

Mutual financial organisation OneFamily has announced it is going to enter the lifetime mortgage market in the next couple of months, with what it claimed will be a ‘unique product offering’.

The firm is awaiting regulatory approval from the Financial Conduct Authority to launch into the equity release sector, with what it said will make it one of the most flexible lifetime mortgage solutions providers in the market, offering a family-focused range of products.

Fully flexible

The new products will be structured to enable families to protect their inheritance and to make the most of their greatest asset, their home, said OneFamily. Customers and their families will be able to pay some or all of the interest each month; flexibility which will help to avoid any negative impact of rolled-up interest.

For the first time in the lifetime mortgages sector, the products will offer variable interest rate pricing, linked to the Consumer Price Index, alongside the traditional fixed rate options. They will also offer fixed term Early Repayment Charges, a down-sizing guarantee and the option to stop paying interest and to switch to one of OneFamily’s other products.

Simon Markey, CEO of OneFamily said: “The lifetime mortgage market is growing rapidly, as more homeowners over the age of 55 make use of their housing wealth to support their finances in later life.

“OneFamily is the modern mutual designed to help families who want to help each other meet the financial demands of modern life. With that as our driving ambition and strategy it is only natural we should seek to enter the Lifetime Mortgage market and to do so in such an innovative way.

“Lifetime mortgages are a natural extension for OneFamily. These new products will allow families to make the best use of their most valuable asset, their home.”

The products will only be available via mortgage advisers.


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