OneFamily has made a number of changes to its two-year fixed and variable rate lifetime mortgages.

The changes include lower early redemption charges, an increased maximum loan amount and a reduction in interest rates.

Customers will now pay no early redemption charges after eight years. If customers choose to pay the mortgage back prior to this, they will pay a small percentage of the outstanding loan on a sliding scale from 6% in year one to 1% in year eight.

The maximum loan amount has increased to £1 million following increased interest from homeowners of properties worth in excess of £2 million.

OneFamily has also reduced interest rates for Lite LTV Lifetime Mortgages, which will move to a 3.55% rate from 3.90%. The variable rate margin will also reduce to 2.30% MER from 2.50%.

Nici Audhlam-Gardiner, managing director of lifetime mortgages at OneFamily, said: “We regularly review our products to ensure we are competitive and these changes enhance our variable and two-year fixed propositions.

“We’ve also recently enhanced our fixed rate products as we continue to innovate our later life lending options.”

OneFamily offers an interest roll-up mortgage 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. Alternatively, customers can take an interest payment mortgage which allows up to 100% of the interest to be paid off each month.