OneFamily has reintroduced its lifetime mortgage for higher loans to value (LTVs).
The Super LTV Lifetime Mortgage from OneFamily created a new segment when it launched back in March. The product enables homeowners in England and Wales, over the age of 70, to release up to 58% of the value of their property.
OneFamily is now offering a lower completion fee and reduced rate.
The Super LTV Lifetime Mortgage features some the most popular elements of OneFamily’s lifetime mortgages, such as giving borrowers the ability to borrow up to £1 million and allowing them to make voluntary repayments of up to 10% of the initial loan amount each year, as well as direct access to OneFamily team of fully qualified underwriters who assess each loan application on an individual basis.
It also features a sliding scale for early repayment charges (ERCs) for the first eight years of the loan, after which no ERCs will apply. The charges are amongst the lowest in the market. Years one to three are charged at 6%, year four at 5%, year five at 4%, year six at 3%, year seven at 2% and year eight at 1%. The fixed percentages, based on the lower of the initial loan and the outstanding balance, make it easy for homeowners to understand the cost of closing the loan early.
The product helps advisers meet the needs of customers who want to access a larger amount of capital to meet their own retirement needs or to optimise the support they can provide to the next generation.
Nici Audhlam-Gardiner, managing director of OneFamily Lifetime Mortgages, said: “Our Super LTV Lifetime Mortgage opens up the market for advisers, offering greater flexibility and choice, whilst maintaining the bespoke service aspects that set OneFamily apart from other providers.”