OneFamily adjusts variable lifetime mortgage

OneFamily adjusts variable lifetime mortgage

OneFamily has adjusted its two-year fixed and variable rate lifetime mortgages to offer increased flexibility to borrowers.

The provider has cut the interest rate on its Lite LTV lifetime mortgage to 3.55 per cent from 3.9 per cent and lowered its variable rate margin from 2.5 per cent to 2.3 per cent MER.

OneFamily has also changed its early redemption charges so customers will now pay no charge after eight years and any prior repayment will be charged on a sliding scale from 6 per cent in year one to 1 per cent in year eight.

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OneFamily also increased its maximum loan amount on its variable rate lifetime mortgage to £1m, following a reported increased interest from homeowners with properties valued in excess of £2m.

Nici Audhlam-Gardiner, managing director of lifetime mortgages at OneFamily, said: "We regularly review our products to ensure we are competitive and these changes enhance our variable and two-year fixed propositions.

"We have also recently enhanced our fixed rate products as we continue to innovate our later life lending options."

Last month OneFamily reduced rates and increased its maximum loan amount across its fixed rate mortgages, reporting most property wealth sat with the over 55 demographic who have benefitted from long-term price increases.

Increasing its fixed rate maximum loan to £1m, the provider reported almost 800,000 British homes are valued at this price.