The increased loan amount will allow advisers to offer even more customers the opportunity to release equity from their property.
Research shows that there are now nearly 800,000 homes across Britain valued at least £1 million - with much of this wealth sitting with the over 55s who have benefited from long term price increases. The majority of these properties are in London and the South East, an area that has seen a significant increase in equity release sales over recent years.
As well as raising the maximum loan amount, the interest rates on OneFamily fixed rate mortgages are being reduced for both Standard and Lite Lifetime Mortgages. Lite will have a MER rate of 4.34%, while Standard will be 4.79%. These rate changes are live from today.
Nici Audhlam-Gardiner, Managing Director of Lifetime Mortgages at OneFamily comments:
“Following feedback from intermediaries, it became clear that there was a need in the market for higher loan amounts. Equity release is no longer a reaction for consumers to make up a savings shortfall but rather a proactive decision to make the most of their largest asset. Some homeowners are looking to give loved ones a living inheritance with an intergenerational wealth transfer, while others want to improve their own lives with major home improvements or by investing in other property.
“These changes reflect our desire to provide lifetime mortgages that help fit a range of consumer needs and allow advisers to give their clients the solution that is right for them.”
