OneFamily - Voluntary Payment Standard - Variable
Roll up Lifetime Mortgage
Rate: 6.19%
APR: 6.50%
Exclusive 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 organisational merger between Engage Mutual and Family Investments which created one of the largest Mutual organisations in the UK. OneFamily is a trading name of Family Assurance Friendly Society which manages over £7.5 billion in funds and over two million members. OneFamily specialised in Guaranteed over 50's Life Cover, however now sees further growth potential in the retirement area of financial planning.

The Voluntary Payment Lifetime Mortgage offered by OneFamily provides the homeowner with a variable interest rate scheme.

It initially offers a one-off lump sum with an allowance for the homeowner to make repayments of upto 10% pa of the initial loan amount each year, without incurring any early repayment charges. The voluntary repayments can be made at any time so as to be tailored to the homeowner’s particular needs. This product does not use an affordability assessment in determining eligibility.

The OneFamily Voluntary Payment Lifetime Mortgage provides loan ranging from £10,000 upto a maximum equity release 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, it is the age of the younger borrower that will be used in determining loan-to-value’s.

In order for the property to be eligible, it must have a minimum valuation of £70,000, with no maximum valuation imposed, but any property valued over £2 million must be accompanied by a referral. The property must be located in England, Scotland or Wales to qualify.

There are a number of very unique features available with this OneFamily Voluntary Payment product. To start, the early repayment charges are fixed for the first ten years following loan completion of the advance. For years one to five, the early repayment charge is 6%. For years six to ten, it is 3% and NO penalty exists after the tenth year.

In addition to this, the product comes with a downsizing protection option which means that the homeowner is able to repay their loan without incurring any early repayment chargers after five years, if they decide to move to sell the home and move to another property.

This Voluntary Payment Plan is also portable which allows it to be swapped to an alternative, but qualifying property. It also come with the industry standard no negative equity guarantee. This means that if the eventual sale of the property does not satisfy the full outstanding loan balance, the beneficiaries of the estate are not left with the debt. There is no drawdown or cash reserve facility available with this product.

This OneFamily Lifetime Mortgage does come with a variable interest rate which means that any homeowner who does want to take advantage of it should know and understand how the interest rate works. OneFamily calculates the interest rate through a very specific method. The interest rate is the product margin added to the Annual Consumer Price Index. The rate is reviewed each year and if there is a change it will be in December for the preceding period of October through September. There is a cap applied to the maximum interest rate that can be applied & will be advised when the equity release mortgage starts.

The most unique feature of this product is the allowance for voluntary repayments. This structure works well for any homeowner who would like to make payments on their loan but does not want to be forced to follow a specific payment schedule. The voluntary payment amount can be up to 10% of the initial loan amount every year without incurring any early repayment charges. The allowance is renewed each year and cannot be rolled over from one year to the next. Payments can be made by the homeowner as soon as the loan is completed and any number of payments can be made throughout the year so long as the payment meets the minimum amount allowed of £25. The payments can be made via debit card, standing order, bank transfer, or by cheque.

Additional borrowing is also available with the OneFamily Voluntary Payment lifetime mortgage. Approval for that borrowing is contingent on the lending criteria applied at the time of that application. The minimum amount available for additional borrowing is £4,000.

The loan-to-values (LTV’s) for this Standard version of the OneFamily Voluntary Payment variable lifetime mortgage are higher than the Lite version and therefore start at age 55 with 21% for single life and 20% for joint life. This product does come in a Voluntary Lite version as well. The Lite version offers a lower interest rate and lower LTV’s than the Standard Version.

This product is ideal for the homeowner who wants to have some control over the interest accruing on their equity release loan, but does not want to be held to a specific payment schedule like a conventional mortgage would. The OneFamily Voluntary Payment plan allows for a degree of flexibility for the homeowner and should be taken advantage of by a homeowner who understands and is comfortable with a variable interest rate.

*Free valuation offer available on properties valued under £1m, pro-rata thereafter.


Call the Compare Equity Release team on 0800 678 5169 for further details or to request a personalised Key Facts Illustration on the OneFamily Voluntary Payment Standard Lifetime Mortgage (Variable).
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