OneFamily is launching a two-year fixed offer on its interest payment lifetime mortgage.
OneFamily’s interest payment lifetime mortgage gives customers the ability to pay off up to 100% of the interest on their loan on a monthly basis.
The deal means that homeowners can fix the interest rate for a two-year period until 30 November 2020 and on 1 December 2020, the product will move to a Consumer Price Index (CPI) linked variable rate.
The introductory two-year fixed interest rates range from 3.9% MER to 4.2% MER depending on the loan to value.
The two-year fixed deal is already available on OneFamily’s other lifetime mortgages, where interest is rolled up and paid at the end of the loan, or homeowners can pay off up to 10% of the original loan amount each year.
Nici Audhlam-Gardiner, managing director of lifetime mortgages, said: “We launched our two-year fixed offer on our roll up mortgage and it has proved very popular with homeowners, in particular with those seeking larger amounts of capital. We are lending an average of £110,000 on the two-year fixed mortgage, which is £20,000 more than the average loan amount on our fixed rate mortgages.
“Lifetime mortgages are now an intrinsic part of funding retirement for a growing number of people. As the lifetime mortgage market continues to grow, so does the need for new and innovative products, as more retirees look for ways to supplement their income during retirement. Our interest payment products are now the most popular mortgages we sell as they give homeowners the ability to protect the remaining capital in their home, addressing one of the biggest concerns homeowners have when considering equity release.”