The provider launched its first products earlier in the month.
OneFamily Lifetime Mortgages has joined the Equity Release Council.
The provider launched its first products earlier in the month; an interest-only roll-up starting from 4.98% for fixes and 2.96% for variables and a roll-up voluntary payment product starting from 5.45% for fixes and 3.44% for variables allowing the customer to repay 10% of the initial loan per year.
Nigel Waterson, chairman of the Equity Release Council, said: “We are delighted to welcome OneFamily Lifetime Mortgages to our membership and look forward to its contribution to help UK homeowners make use of their housing wealth, where appropriate, for financial support in retirement.
“The equity release sector is experiencing growing demand from consumers keen to consider all of their available assets as part of their later life financial planning.
“Our members have led the way in establishing a safe and reliable market for consumers, by providing guarantees about the standards of advice and products they will receive from firms who carry our logo. This work will continue as the sector explores new ways to combine innovation with protection and long-term sustainability.”
Legal & General Home Finance joined the council in 2015 and Pure Retirement in 2014.
Existing provider members are Aviva, Bridgewater, Hodge Lifetime, Just Retirement and Partnership (now part of JRP Group), LV=, more 2 life, Retirement Advantage (formerly Stonehaven) and Retirement Plus.
Georgina Smith, managing director of OneFamily Lifetime Mortgages, said: “We have introduced new and innovative features into the lifetime mortgage market, including the option of a variable interest rate. We have done this to extend consumer choice and to help grow the market.
“When we launched our intention to enter the lifetime mortgage market, we said that all of OneFamily’s plans would be underpinned by The Equity Release Council safeguards and be based on the highest ethical standards, as befits a mutual organisation.
“These products will complement OneFamily’s vision to enable families to work together to meet the financial demands of modern life.”
The Equity Release Council represents over 400 individual members and 150 member firms including providers, qualified financial advisers, solicitors, surveyors and other industry professionals.
Its providers account for 95% of all equity release lending.
