OneFamily, the mutual which came from the merger of Family Investments and Engage, has announced its intention to enter the lifetime mortgage market with a range of new products.
OneFamily Lifetime Mortgages will only be available through financial advisers, and will launch in mid-April.
The mutual said further details would be revealed over the coming weeks.
Andrea Rozario, chief corporate officer at Bower Retirement Services, said: “The announcement of OneFamily’s intention to join the lifetime mortgage market is a welcome addition to a growing market.
“I’m sure the whole industry will be interested to see exactly what the family-focused products and the underwriting will look like. Lower interest rates, flexibility and increased choice are all great news for customers and there is a particular need for solutions for people facing the end of an interest-only mortgage as equity release can offer a lifeline to some in this predicament.
“Over recent years we have seen several providers produce increasingly competitive and flexible products and this trend is likely to continue. For some customers an ability to protect an element of equity to pass on to family in later years is important while for others releasing property wealth enables them to help their family members immediately.
“Involving the family in equity release is heavily encouraged and often the children want to help their parents or grandparents consider all their options so any product that increases these options is helpful although specialist advice is crucial and ultimately the choice must be the customers.
“As people increasingly live longer changing circumstances have to be considered which makes flexible products designed to help very important. However customers need to have a deep understanding of the implications of a lifetime mortgage and any possible variation in interest rates as well as the benefits. This market will continue to grow and evolve and the launch of new lenders and increased competition ultimately benefits the customer.”
