Majority of lifetime mortgage customers choosing flexible interest payments

Borrowers have the option to pay off up to 100% of the interest on their loan either monthly or as and when they wish if they have a variable monthly income.

OneFamily says the product is particularly suitable for homeowners who have a monthly income but are looking to access a lump sum from their property, whilst retaining the capital in their home, often to ensure they leave an inheritance to family members.

Nici Audhlam-Gardiner, managing director of lifetime mortgages at OneFamily, commented: “The lifetime mortgage market is growing and attracting a diverse group of clients who want products to suit different needs. At OneFamily we want to help advisers support the changing demographics of lifetime mortgage clients and we aim to make our products as flexible as possible.

“Our interest payment products attract those homeowners who have a regular income from pensions and other savings but require a lump sum. They can afford, and would prefer to make interest payments than have the interest roll-up. In some cases, the homeowner themselves pays the interest, and in other cases, other family members who may have benefited from the lump sum, such as for a deposit on a first home, pay for it on behalf of the homeowner enabling wealth to be shared across the family.

“These different ways of taking advantage of the capital in your property show the innovative ways lifetime mortgages can be used and with providers like us coming to the market with new products, homeowners over 55s should increasingly consider how they can use equity release to fund their lifestyle.”