OneFamily - Voluntary Payment Lite - Variable
Roll up Lifetime Mortgage
Rate: 5.99%
APR: 6.33%
Incentive Deal:
Features: FREE Valuation Offer*| Choice of either Fixed/Variable Rates | 10 Year Fixed Early Repayment Charges | Downsizing Protection Option | 10%pa Voluntary Payments with NO Penalty

OneFamily is the product of a merger between Engage Mutual and Family Investments in 2015, creating one of the largest Mutual organisations in the UK. OneFamily is a trading name of Family Assurance Friendly Society and manages over £7.5 billion and over two million members. OneFamily currently specializes in Guaranteed over 50s Life Cover, but is progressively moving into the retirement arena.

The OneFamily Voluntary Payment Lite product provides the homeowner with a variable interest rate which is linked to the Consumer Price Index (CPI). It provides a one-off lump sum payment, while also allowing the homeowner to repay up to 10% of the initial loan amount every year without incurring any early repayment charges. The payments are voluntary and can be made at any time and require NO proof of income by the lender.

The Voluntary Payment Lifetime Mortgage plan provides loans ranging from £10,000 upto a maximum loan amount of £750,000.

In order to be eligible, the homeowner must be between the ages of 55 and 100 at the time of completion. If borrowing jointly, the youngest borrower’s age will be used when determining the loan-to-value ratio.

The minimum property valuation accepted is £70,000. The maximum property price is unlimited, but any property with a valuation above £2 million must be accompanied by a referral to OneFamily’s underwriters. The property must be located in England, Scotland or Wales to qualify.

There are several innovative features available with this product. The early repayment charges are fixed for the first ten years only, with years one to five acquiring an early repayment charge of 6%. For years six to ten, the charge is 3% and NO penalty exists after the tenth year should repayment occur then.

The loan is portable to an alternative property and comes standard with both downsizing protection and a no negative equity guarantee. The downsizing protection allows the homeowner to pay off the loan if after five years, the homeowner decides to sell the home to move to another property.
The no negative equity guarantee ensures that if the eventual sale of the property does not satisfy the total balance owed on the loan, the estate and its beneficiaries are not responsible to pay the difference.

As the plan only provides a standard lump sum amount at inception, OneFamily do not provide a drawdown or cash reserve facility available with this product.

This OneFamily Voluntary Payment Lite plan does have a variable interest rate and homeowners who are interested in this product should know about and be comfortable with variable rates. The interest rate does follow a calculation that is the product margin added to the Annual Consumer Price Index. The rate is reviewed annually and if there are changes they are used to amend the rate for the forthcoming year. They will be in amended in December for the preceding period of October through September. The interest rate is capped however, at rate determined by OneFamily at the time the plan commences.

The homeowner is allowed to pay up to 10% of the initial loan amount every year without incurring any early repayment charges. That allowance is renewed every year on the anniversary of the loan and any allowance cannot be carried from one year to another. Payments can be made by the homeowner as soon as the loan has been completed and there can be any number of payments made throughout the year, so long as the minimum amount of £25 is met each time. The payments can be made via standing order, debit card, cheque, or bank transfer.

Additional borrowing is also a feature of this product, approval for which is dependent upon the lending criteria at the time of the application. The minimum amount allowed for additional borrowing is a equity release loan of £4,000.

The LTV’s for the OneFamily Voluntary Payment Lite Variable start at 16% for single life and 15% for joint life at age 55. There is also a standard voluntary payment version of this product, which differs in loan-to-value’s as well as a fixed interest rate version.

This product is ideal for the homeowner who is concerned with the impact of interest roll-up but who does not want to have to make payments based on a set monthly payment schedule. This is also a good choice for the homeowner who is interested in and has some working knowledge of variable interest rates.

*Free valuation applies on properties upto £1 million.


Call the Compare Equity Release team on 0800 678 5169 for further details, or to request a personalised quote on the OneFamily Voluntary Payment Lite Variable Rate Lifetime Mortgage.
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