OneFamily has increased the maximum loan amount from £750,000 to £1 million on its fixed rate lifetime mortgages and reduced interest rates.

As well as raising the maximum loan amount, the interest rates on OneFamily fixed rate mortgages are being reduced for both Standard and Lite Lifetime Mortgages. Lite will have a MER rate of 4.34%, while Standard will be 4.79%.

OneFamily offers Interest Roll-up with a Voluntary Payment option, which allows consumers to pay off up to 10% of the initial loan balance each year, with no early repayment charges or Interest Payment which allows up to 100% of the interest to be paid off.

Nici Audhlam-Gardiner, managing director of lifetime mortgages at OneFamily, said: “Following feedback from intermediaries, it became clear that there was a need in the market for higher loan amounts. Equity release is no longer a reaction for consumers to make up a savings shortfall but rather a proactive decision to make the most of their largest asset. Some homeowners are looking to give loved ones a living inheritance with an intergenerational wealth transfer, while others want to improve their own lives with major home improvements or by investing in other property.

“These changes reflect our desire to provide lifetime mortgages that help fit a range of consumer needs and allow advisers to give their clients the solution that is right for them.”