OneFamily launches 58% LTV lifetime mortgage

The product will offer the highest LTV currently available in the equity release marketplace.

The lifetime mortgage allows borrowing up to £1 million and enables borrowers to make voluntary repayments of up to 10% of the initial loan amount each year.

It also features a sliding scale for early repayment charges for the first eight years of the loan, after which no ERCs will apply. 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%.

Nici Audhlam-Gardiner, managing director of OneFamily Lifetime Mortgages, commented: “The lifetime mortgage market is expected to surpass £5 billion in 2019, up by over a billion from 2018 and the growth shows no signs of abating. As it continues to grow so does the need for new innovative products that support this growth, and the changing needs of homeowners seeking equity release.

“Our new 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.

“Our new funding partner we have worked with to develop this product is a large US investment business, and this is the first time that the sector has attracted an investor of this type. This is a true innovation and an industry first. Attracting a prestigious US investor also demonstrates the growing attraction of the equity release market to investors.”