"All new OneFamily customers now have the option to pay off interest at any time on their lifetime mortgage. "
OneFamily has increased the flexibility on its interest roll-up lifetime mortgage, meaning customers can either roll the interest up and pay nothing or can now choose to pay it off as and when they want.
All new customers will now be able to manage the growth of interest on their loan either through regular payments or, via this enhancement, through individual payments up to 10% of the original loan amount.
54% of the lifetime mortgages taken with OneFamily are already used by homeowners who pay off interest.
Of these existing customers, over a third (38%) pay off both some of the capital and interest each year and 16% choose to pay off up to 100% of the interest, demonstrating that the majority of customers would prefer to have the option to pay off interest.
Nici Audhlam-Gardiner, managing director of lifetime mortgages, commented: “By giving our customers the option to pay off the interest on their loan we are giving them increased flexibility. We know that our customers’ financial circumstances change, and we want our products to be able to flex with their needs. For example, we’ve seen cases where customers have been left an inheritance by a friend or older family member, and they want to be able to make a payment on their loan. This new approach helps with this situation
“All new OneFamily customers now have the option to pay off interest at any time on their lifetime mortgage. One benefit of this is maximising the amount of equity left in their property for an inheritance.
“Interest payments can be made monthly with our interest payment product. Alternatively, up to 10% of the initial loan amount can be paid back each year, as part of the new, enhanced feature on our interest roll-up product.”