OneFamily, which earlier this week announced its intention to enter the lifetime mortgage market during the first half of 2016, has now outlined its product proposition.
A key feature is that customers and their families will be able to pay some or all of the interest each month.
OneFamily says its products will offer variable interest rate pricing, linked to the Consumer Price Index, alongside the traditional fixed rate options. They will also offer fixed term Early Repayment Charges, a down-sizing guarantee and the option to stop paying interest and to switch to one of OneFamily’s other products.
The products will only be available via intermediaries.
Simon Markey (pictured), CEO of OneFamily, said: “Families are turning to each other more and more to plan for and manage life’s milestone moments. We understand the aspirations of families alongside the financial pressures they face; whether that’s helping children get on the property ladder or trying to fund a secure retirement.
“The lifetime mortgage market is growing rapidly, as more homeowners over the age of 55 make use of their housing wealth to support their finances in later life. In the final quarter of 2015 there was a record amount of housing wealth unlocked via drawdown lifetime mortgages, pushing annual equity release lending to a new high of £1.61 billion.
“OneFamily is the modern mutual designed to help families who want to help each other meet the financial demands of modern life. With that as our driving ambition and strategy it is only natural we should seek to enter the Lifetime Mortgage market and to do so in such an innovative way.
“Lifetime mortgages are a natural extension for OneFamily. These new products will allow an intermediary’s clients and their families to make the best use of their most valuable asset, their home.”
Leading the venture will be Georgina Smith, appointed by OneFamily as the managing director of OneFamily Lifetime Mortgages, which will operate as a separate business unit under the authority of the OneFamily Group. She has previously been both CEO and sales and marketing director at Stonehaven.
