OneFamily unveils two lifetime mortgage products

Customers can opt for a fixed or variable interest rate.

OneFamily unveils two lifetime mortgage products

OneFamily has launched two lifetime mortgage products allowing consumers to choose how much interest they will pay and for how long.

Customers can opt for a fixed or variable interest rate.

Georgina Smith, managing director of OneFamily, said: “Our new products mean consumers can repay up to 100% of the interest on the loan at either a variable or fixed interest rate, in the same way you would with a mainstream interest-only mortgage.

“Obviously with variable interest rates there is the risk that the monthly payments may change in the future.

“However, OneFamily has considered this and gives consumers the option to fix their maximum monthly interest payment, even if they have a variable interest rate.”

Smith added: “We have included the option to make payments at a set percentage of the interest due or a set amount, and consumers can also choose to stop making the payments if their circumstances change.

“At this point they will have the choice to switch to one of our other lifetime mortgages, such as our interest roll-up or voluntary payment products.”

Dean Mirfin, technical director of Key Retirement, said: “The good news is that both variable and fixed options are available from age 55 and where LTV works this could prove a valuable addition for those looking for an interest-only solution for the short or the long-term Max LTV’s range from 20% for a joint loan at age 55 (21% single) to 50% from age 80 onwards.”