OneFamily - Lump Sum Lite
Roll up Lifetime Mortgage
Rate: 5.50%
APR: 5.80%
Exclusive Deal:
Features: FREE Valuation Offer* | Choice of 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 more than £7 billion in family money and serves 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. These products are both unique and customisable.

The Lump Sum Lite product is one of these new equity release schemes introduced by OneFamily. It provides a lump sum upfront payment to the homeowner and does not require any payments to be made against the loan balance. Because of the structure of this plan, it is ideal for the homeowner who does not want to be required to make any payments and who is not concerned with the effects of interest follow-up.

This is also a variable interest rate product which means that homeowners who takes advantage of this product should know and understand how variable (CPI) interest rates work. Because there are no payments required with the OneFamily Lump Sum Lite, the entire loan balance is simply repaid when the home is sold, mostly likely when either the homeowner moves into long-term care or passes away.

The loan amounts available with the OneFamily Lump Sum Lite start at £10,000 and go up to £750,000. To be eligible, the homeowner must be between the ages of 55 and 100 and the product is available on both a single and joint basis.

Properties must have a minimum valuation of £70,000 to be eligible and there is no fixed maximum property value imposed. Instead, if a homeowner has a property valued over £2 million, the homeowner must provide a referral. The property must also be located in England, Wales or Scotland to be eligible.

This product offers a variety of unique features to homeowners including fixed early repayment charges. These charges are fixed for the first 10 years of the loan and follow a sliding scale. For years 1 to 5, the early repayment charges are 6%. For years 6 to 10, they are just 3%.

Other unique features include a standard no negative equity guarantee and downsizing protection. With the no negative equity guarantee, the homeowner’s estate is not held responsible for any further debt if the eventual sale of the home does not satisfy the outstanding loan debt.

With the standard downsizing protection feature, the homeowner has the ability to pay off their loan if after 5 years following its completion, the homeowner decides to sell their home and move to another property. The loan is also portable so there is an option to bring the product with the homeowner to a new property.

For the homeowner who wants the option to borrow additional funds in the future, this product is a good option as additional borrowing is a feature. Approval for that borrowing depends on the lending criteria imposed at the time for which it is applied. The homeowner cannot apply for additional borrowing until at least 6 months following their original loan completion. The minimum amount available for additional borrowing is £4,000 and the maximum is the maximum available LTV available. The homeowner is not allowed to switch to a product with a higher LTV.

The LTV’s for the OneFamily Lump Sum Lite range start at age 55 with 16% for single life and 15% for joint life. They stop at 46% for single and 45% for joint for the ages of 85 to 100.

It is important for homeowners to understand the variable interest rate of this product which follows a specific calculation. The calculation is the product margin added to the Annual Consumer Price Index, or CPI, calculated at 1%. The rate is then reviewed every year and if there are changes to it, the change will be made in December and will impact the preceding period of October to September. The interest rate on the OneFamily Lump Sum Lite cannot exceed 7.50%.

For any homeowner who thinks this product is attractive but does not want a variable interest rate, OneFamily does offer this same product with a fixed interest rate as well. There is also a standard version of this product available as well.

This product is most suitable for the homeowner who wants a lump sum payment and does not want to be required to make any payments against their loan. This product works well for the homeowner who has a fixed income and is unsure of the ability to sustain regular payments. The homeowner who finds this product attractive will both not be too concerned with interest roll-up and will also understand a variable interest product and the nature of the pros and cons this brings.

*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 Variable plan.
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
  • Exclusive deals to save you money
  • Free 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 with the following equity release companies:

Aviva | Bridgewater | Hodge Lifetime | Just Retirement | LV= | more2life | One Family | Retirement Advantage | Pure Retirement