One Family Equity Release Review
- A choice of three type of Equity Release Scheme
- Members of the Equity Release Council
- Choose from variable of fixed rate interest options
Once you have read the One Family Review, you could compare equity release reviews from other providers and as a starting point use the equity release calculator to see how much cash you could release from your home.
Try the Equity Release Calculator
About One Family
This Equity Release review focuses on One Family, formally known as Engage Mutual.
One Family is the trading name of the Family Assurance Friendly Society Limited, which is a mutual and therefore owned by and run for the benefit of its members.
It was created in April 2015 by the merger of two award winning mutuals:
- Engage Mutual
- Family Investments
In addition to providing equity release schemes, One Family also offer award winning life insurance and saving and investment schemes.
They are regulated by the Financial Conduct Authority and members of the Equity Release Council, which means they have voluntarily agreed to abide by the principles of their membership.
One Family Lifetime Mortgage 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.
Are you eligible for One Family Equity Release?
Once you have read your equity release reviews, before you decide on an equity release scheme with any provider it is important that you fully understand the implications of a lifetime mortgage; look at all the options available to you and discuss everything with the family.
To qualify for a One Family equity release plan the following must apply:
- You must be a homeowner ageed 55 or over
- Your property is worth at least £70,000
Other conditions will apply such as the type of property but this information will be available through your financial adviser.
- The costs associate with putting a One Family lifetime mortgage in place are the Valuation, Completion, Solicitors and Advisers fees
- If you choose to sell your property and move to a smaller home, you can repay the loan without incurring any early repayment charges after 5 years of taking out your lifetime loan
- You have the flexibility to move and retain the same terms and conditions as long as the new property meets One Family’s criteria. You may be asked to repay part of the loan.
One Family Equity Release Calculator
One Family do not offer an equity release calculator on their website; they only specify that the amount you can borrow depends on the value of your property and your age.
In order to understand exactly how much you can borrow, you need to speak to an equity release adviser who will access your situation, help you consider the alternatives and then if appropriate, obtain a personalised illustration from One Family for you.
What should I do now?
Now you have read our One Family Equity Release Review, why not read our other equity release reviews to see how they compare.
It is worth keeping in mind that not all advisers compare the whole of the equity release market; some focus on particular companies which may not offer you the most appropriate equity release scheme.
This is one of the reasons we have teamed up with leading specialist Age Partnership, as they compare schemes across the whole market with companies like Aviva, Legal & General, LV, Pure, Canada Life, One Family, Scottish Widows, Hodge Lifetime and Just Retirement.