OneFamily - Voluntary Payment Standard
Roll up Lifetime Mortgage

Scheme Name: OneFamily - Voluntary Payment Standard
Interest Rate: 6.19%
APR: 6.50%

Incentive Deal:


Repayment Type

FREE Valuation* | Choice of Fixed/Variable Rates | 10 Year Fixed Early Repayment Charges | Downsizing Protection Option | 10%pa Voluntary Payments with NO Penalty

Full details:

OneFamily was originally created from the merger of Engage Mutual and Family Investments, and is now one of the largest Mutual organisations in the UK. OneFamily is the trading name of Family Assurance Friendly Society and manages over £7 billion in family money with over two million members. While originally known mostly for specialising Guaranteed Over 50s Life Cover, OneFamily is now moving into the retirement field with unique and innovate equity release and lifetime mortgage products.

The Voluntary Payment Standard Variable product issued by OneFamily provides the homeowner with a one-time lump sum payment and allows the homeowner to repay up to 10% of the initial loan amount every year without incurring any early repayment charges. This allows the homeowner to sustain some level of control over the outstanding loan balance, which makes this product a good option for any homeowner concerned with the impact of interest roll-up.

This product provides loans ranging from £10,000 to a maximum level of £750,000. The homeowner must be between the ages of 55 and 100 at the time of loan completion. If borrowing jointly, the loan-to-value (LTV) is based on the younger applicant’s age.

For a property to be eligible, it must have a minimum valuation of £70,000 and there is no maximum property value imposed. If the property exceeds a valuation of £2 million, it must be accompanied by a referral. The property must also be located in Scotland, England or Wales to qualify.

There are a number of unique features offered with the OneFamily Voluntary Payment Standard Variable scheme. Primarily, the early repayment charges are fixed for the first ten years after loan completion. For years one through five, the charges are 6%. For years six to ten, the charges are 3%. There are no charges imposed beyond year ten.

The loan is portable, thus can be transferred to another eligible property to OneFamily and there is no drawdown or cash reserve facility available.

Both downsizing protection and a no negative equity guarantee come standard with this product. With a no negative equity guarantee, if the eventual sale of the property does not satisfy the full outstanding loan balance, there is no additional debt owed to the lender. With the downsizing protection, if the homeowner pays back their lifetime mortgage because they sell their property and move to another, the homeowner will not incur any early repayment charge, as long as the property sale and the move take place at least five years after the loan completion.

This product uses a variable interest rate, which follows a specific calculation. The interest rate is the product margin added to the annual Consumer Price Index (CPI) calculated at 1%. The rate is reviewed annually and any rate change will be in December for the previous period October through September. There is an interest rate cap applied to ensure that the rate is always reasonable.

The voluntary payment option is one of the most unique features of this product. The homeowner is allowed to pay up to 10% of the initial loan amount each year without incurring any early repayment charges. The homeowner can start making payments right away following loan completion and any number of payments can be made every year, though the minimum payment amount is £25. Payments can be made via standing order, cheque, debit card, or bank transfer.

Additional borrowing is also an available feature with this product, though approval for additional borrowing is not guaranteed and is contingent on the lending criteria imposed at the time of the application. The minimum amount available for borrowing is £4,000 and the maximum is the maximum LTV available on the product. Switching to a higher loan-to-value product is not allowed. Voluntary payments are also allowed on the additional borrowing balance.

The loan-to-value range for the OneFamily Standard version of the Voluntary Payment product start at 21% for single life, and 20% for joint life at age 55. They go up to 50% for both single and joint life for ages 85 to 100.

This product is ideal for the homeowner who wants to take advantage of a lifetime mortgage scheme, but also wants to ensure they have some control over their interest balance. This is also an ideal product for the homeowner who is concerned with leaving behind an inheritance to beneficiaries.

*Free valuation based on property valuations upto £1 million, and pro-rata thereafter.

Please contact the Equity Release Supermarket team on 0800 678 5159 for further details, or to request your OneFamily Voluntary Payment Standard Variable rate lifetime mortgage quote.