OneFamily has gone live with two new lifetime mortgage products, with two more ready for launch in the next couple of months.
The first two are an interest roll-up product and a roll-up voluntary payment option, which allows the customer to repay 10 per cent of the initial loan each year without incurring an early repayment charge.
The roll-up product is being launched with fixed interest rates from 4.98 per cent and variable interest rates from 2.96 per cent, and the roll-up voluntary payment option will attract fixed interest rates from 5.45 per cent or variable interest rates from 3.44 per cent.
Waiting in the wings are two interest-paying products, which will include a fixed rate and variable rate linked to the consumer price index.
With the DNA of Georgina Smith (ex-Stonehaven) and Jon Tweed (ex-Hodge) coursing through the veins of OneFamily, you can bet that we’ll see plenty of innovation ahead. Simon ChalkGeorgina Smith, managing director of the mutual’s lifetime mortgage arm, said: “We wanted to introduce new and innovative features into the lifetime mortgage market, including the option of a variable interest rate.
“We have done this to extend consumer choice and to help grow the market.”
OneFamily announced its intention to enter the equity release market earlier this year, promising a unique product offering available exclusively through advisers.
Adviser view
Simon Chalk, technical manager for equity release at Age Partnership, said this is the first new entrant to the lifetime mortgage since Pure Retirement launched more than two years ago.
Mr Chalk said: “The initial products look to be competitive, as I’d hope them to be with mutual society backing. But the really big news is the reappearance of a low variable rate offering on the market.”
peter.walker@ft.com
