OneFamily cuts lifetime mortgage rates in criteria revamp

Rates on the lender's Lite LTV lifetime mortgages have been cut from 3.90% to 3.55%, with the variable rate marging reducing from 2.50% to 2.30%.

Additionally, customers will now pay no early redemption charges after eight years and if they 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 also increased to £1 million following increased interest from homeowners of properties worth in excess of £2 million.

Nici Audhlam-Gardiner, managing director of lifetime mortgages at OneFamily, commented: “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."