OneFamily launches 58% LTV lifetime mortgage
28 March 2019
OneFamily has launched a new loan-to-value lifetime mortgage, aimed at homeowners looking to release a bigger amount of capital to meet their retirement needs.
The new mortgage will enable borrowers over the age of 65 to release up to 58% of the value of their property, making it the highest loan-to-value available in the equity release marketplace. It has teamed up with a large US investment business to develop the new product.
OneFamily said customers will be able to borrow up to £1 million and make voluntary repayments of up to 10% of the initial loan amount each year, featuring a sliding scale for early repayment charges for the first eight years of the loan. Years one to three are charged at 6%, while year 4% is charged at 5%, year five at 4%, year six at 3%, year seven at 2% and year eight at 1%. After eight years, no early repayment charges will apply.
The company said the mortgage meets the “needs of a new group of customers” who want to access a larger amount of capital to meet their own retirement needs or to optimise the support they can provide to the next generation.
Nici Audhlam-Gardiner, managing director, OneFamily Lifetime Mortgages, said: “As the lifetime mortgage market 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 LTV Lifetime Mortgage opens up the market for advisers, offering greater flexibility and choice.
“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.”
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