One Family Equity Release options
One Family offer three equity release or lifetime mortgage options;
- Interest Roll Up Lifetime Mortgage
- Voluntary Payment Lifetime Mortgage
- Interest Payment Lifetime Mortgage
They do not offer advice so if you are interested in finding out more about one of their schemes you would need to seek the advice of an equity release qualified financial adviser.
All the One Family Lifetime mortgage plans offered guarantee that you will always retain ownership of your home as long as you comply with their terms and conditions.
Interest Roll Up Lifetime Mortgage
This type of One Family lifetime mortgage provides a lump sum that is repayable when your home is sold, usually following death or a move into long term care.
The minimum amount you can borrow is £10,000 and the interest is is added to the loan each month. The maximum loan is based on your age, the value of your property and whether it is a single or joint application.
Voluntary Payment Lifetime Mortgage
This lifetime mortgage option is similar to the roll up option as no repayment is required through the life of the loan however you can if you chose repay 10% of the original loan every year without incurring any repayment charges.
Any repayment can either be made as a one off payment or you can choose to make several smaller payments throughout the year.
Interest Payment Lifetime Mortgage
The third lifetime mortgage option gives you the option to pay some or all of the interest accrued each month for a period of your choice.
The minimum amount you can pay is £25 and the maximum is the whole of the interest but this must be selected at the outset.
The One Family equity release schemes included in this review also offer the following:
- No Negative Equity Guarantee – a requirement of all members of the Equity Release Council which means that the total owed will never be greater than the amount the property is sold for
- A choice of variable or fixed interest rate schemes. If you choose a fixed rate for any of the lifetime mortgage schemes listed above, this means that the rate of interest paid will be fixed throughout the life of the loan. If you choose one of the One Family lifetime mortgages with a variable rate, then this will be fixed each year based on the consumer price index.