OneFamily - Lump Sum Lite
Roll up Lifetime Mortgage
Rate: 4.89%
APR: 5.10%
Incentive Deal:
Features: FREE Valuation Offer* | Choice of either Fixed/Variable Rates | 10 Year Fixed Early Repayment Charges | Downsizing Protection Option

OneFamily is a reputable and trusted provider of equity release products, created from the merger of Family Investments and Engage Mutual back in 2015. OneFamily now manages over £7 billion in family money and has over two million members. Even though the lender is known mostly for specialising in Guaranteed over 50’s Life Cover, it is making its way into the equity release marketplace with an introduction of a series of products available to homeowners who wish to capitalize on the equity built up in their home.

The Lump Sum Lite is one of this lender’s newest products and is offered with both a variable and fixed interest rate. Though this is the Lite version of the product, there is also a standard version offered by the lender as well.

The OneFamily Lump Sum Lite product provides a one-time lump sum payment to the homeowner and does not require any monthly payments to repay the loan. Instead, interest is simply accrued on the loan and the full balance is repaid when the home is eventually sold, most usually when the homeowner enters long term care or passes away. Because of the structure of this product, the homeowner who takes advantage of it should not be concerned with interest-roll-up.

Loan amounts with this product start at £10,000 and go up to £750,000. To be eligible for the One Family Lump Sum Lite plan, the homeowner must be between the ages of 55 and 100. The product is offered both on a single and joint basis. If borrowing jointly, the loan-to-value is based on the age of the younger applicant.

For a property to be eligible for use with this equity release scheme, it must have a minimum valuation of £70,000. There is no maximum property valuation in place for any property that has a valuation higher than £2 million, the homeowner must provide a referral. The property must also be located in England, Scotland or Wales.

There are a number of very unique features provided with this roll-up lifetime mortgage product. To start, both a no-negative equity guarantee and a downsizing protection come as standard. With the no negative equity guarantee, the homeowner’s estate will not be held responsible for any debt remaining if the eventual sale of the property does not satisfy the full debt balance remaining.

The downsizing protection allows the homeowner to repay their loan if they choose to move to another property, provided that moves takes place at least 5 years after their loan completion. The loan is also portable if the homeowner wants to take it with them to another property, provided the property meets all eligibility criteria.

Fixed early repayment charges are another unique feature with the Lump Sum Lite product. They are fixed for the first ten years of the product and follow a sliding scale. For years one to five, the early repayment charge is 6%. For years six to ten, the charge is just 3%.

Additional borrowing is also an available feature with this product, approval for which is contingent on the lending criteria imposed at the time of the application. The homeowner may apply for additional borrowing 6 months after the initial loan completion. The minimum amount available to be borrowed is £4,000 and the maximum is the maximum LTV available on the product. The homeowner is not allowed to switch to a product with a higher LTV.

The loan-to-values for the Lump Sum Lite start at 16% for single and 15% for joint at age 55. They go up to 46% for single and 45% for joint for ages 85 to 100.

There is no drawdown or cash reserve facility available with this product. With this version within the Lump Sum range, the interest rate is fixed for the lifetime of the loan, thus assurity of the future balance will be known.

This product is ideal for the homeowner who wants to release equity from their home but does not want to be required to make any monthly payments. The homeowner should not be as concerned with interest roll-up, or with leaving maximum equity behind as an inheritance to beneficiaries.

*Free valuation offer applies to properties valued upto £1 million

Call the Compare Equity Release team on 0800 678 5169 for further details, or to request a quote on the OneFamily Lump Sum Lite Fixed.
These are lifetime mortgages and home reversion plans. To understand their features and risks, ask for a personalised illustration.

 

  • All schemes are authorised and regulated by the FCA
  • Continued ownership of 100% of your home
  • Interest rates sourced from the whole of the market
  • Continued benefit from future house price increases
  • Special deals with incentives to save you money
  • Free initial advice with no commitment or credit checks

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These are lifetime mortgage & home reversion plans. To understand the risk & features of these plans, request a personalised Key Facts Illustration.

CompareEquityRelease.com helps you to compare and arrange equity release schemes from the whole of the equity release market:

Aviva | Bridgewater | Hodge Lifetime | Just Retirement | LV= | more2life | One Family | Retirement Advantage | Pure Retirement L&G Crown