OneFamily has revealed plans to enter the lifetime mortgage market during the first half of 2016 and has appointed former Stonehaven chief executive Georgina Smith to head up the business.
OneFamily has revealed plans to enter the lifetime mortgage market during the first half of 2016 and has appointed former Stonehaven chief executive Georgina Smith to head up the business.
The launch, which is subject to regulatory approval, will see OneFamily offer a “family-focused” range of products, structured to protect inheritance.
Monthly interest payments will be optional and products will be available on variable interest rates linked to the Consumer Price Index.
Fixed rates will also be on offer as well as simple fixed term early repayment charges, a down-sizing guarantee and the option to stop paying interest and to switch to one of OneFamily’s other products.
The products will only be available via intermediaries and include the option of family member contributions in any affordability assessment.
Simon Markey, chief executive of OneFamily, said: “Families are turning to each other more and more to plan for and manage life’s milestone moments.
“We understand the aspirations of families alongside the financial pressures they face; whether that’s helping children get on the property ladder or trying to fund a secure retirement.
“The lifetime mortgage market is growing rapidly as more homeowners over the age of 55 make use of their housing wealth to support their finances in later life.”
In the final quarter of 2015 there was a record amount of housing wealth unlocked via drawdown lifetime mortgages, pushing annual equity release lending to a new high of £1.61bn.
Smith added: “Our proposition recognises that many people approaching retirement with interest-only mortgages will be coming to the end of that product, still in debt, yet unable to remortgage to pay that down.
“Our products will solve that problem ensuring that people can stay in the homes that they love with manageable finance they are able to afford.
“OneFamily lifetime mortgages would give homeowners the chance to help their families to get on the housing ladder and with the Department of Work and Pensions calculating that 11 million of us are facing inadequate retirement incomes, these products could also provide funds to address this pension funding gap.”
All of OneFamily’s plans will be underpinned by The Equity Release Council safeguards.
