OneFamily is extending its two-year fixed lifetime mortgage rate for an additional year.

The offer has been extended until December 2021 and is available across OneFamily’s range of lifetime mortgages.

The product enables homeowners to get a fixed rate of interest for two years, after which the mortgage will move to a Consumer Price Index (CPI) linked variable rate.

The two-year fixed lifetime mortgage is available on both OneFamily’s interest roll-up with voluntary payment option, which means that homeowners can make payments of up to 10% of the initial loan balance each year, with no early repayment charges and on its interest payment mortgage, which allows customers to pay off up to 100% of the interest on their loan.

Nici Audhlam-Gardiner, managing director of lifetime mortgages, said: “The two-year fixed rate provides advisers a new opportunity for their clients who prefer variable products but want some protection while CPI rates are higher.

“Already the offer has opened up the market to a wealthier group of homeowners, with the average loan amount taken exceeding £129,000, on properties worth on average over £550,000. By comparison, the average equity release market loan and property value, currently stand at £96,000 and £350,000 for lump sum plans.

“Some of the top reasons for customers to take a variable lifetime mortgage are to give money to loved ones or to make home and garden improvements.”