One Family Interest Payment Lite

Are You Considering the Interest Payment Lite Scheme? What are the Eligibility Requirements, Features, Interest Rates & Scheme Options? Discover If This Equity Release Plan Is For You.

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One Family Interest Payment Lite Review

Interest Payment Lite Key Details

Type Rate APR
One Family Fixed 4.34% 4.60%

Scheme Incentives

  • Free Valuation

Scheme Offers

  • Fixed or Variable Rates
  • Downsizing Protection
  • Monthly Interest-Only Payments
One Family Interest Payment Lite

I think you’ll agree with me when I say:

It’s REALLY hard to choose the best equity release scheme with all the choices available.

Or is it?

Is the One Family Interest Payment Lite, equity release scheme the best?

Don’t let your equity release dream become a nightmare!

Luckily, we’re here to guide you on the in’s and out’s of equity release, as you deserve only the best.

However, not all plans are suited to each individual. You need to look for one that will serve your home, your lifestyle, and the reason why you’re considering equity release in the first place.

As leading experts in the field, we’ve delved into hours of research, unpacked all the equity release plans on the market (we’ve reviewed over 250 schemes!), and discovered the best in the business.

Could the One Family Interest Payment Lite be the right equity release plan for you?
We’re here to help you:
One Family is one of the leading equity release providers on the market and might just be the answer you’ve been looking for.
Can you truly go wrong with One Family?
Let’s find out!

What's Equity Release?

We've summed up the most important information about the topic in this quick video.

An equity release mortgage is, in a nutshell, a loan plus interest that is paid back to the lender when the homeowner passes away or goes into permanent care. The homeowner’s family usually pays back the cash released, and the interest incurred, from the sale of the home in question.

Learn More: What’s Equity Release?

How Does Equity Release Work?

Equity release is available for individuals or couples over 55, with the youngest homeowner’s age determining the amount of equity that can be released. It is important to note that some equity release schemes may require the homeowner to be 60 or older.

Learn More: How Does Equity Release Work?

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Most popular reasons for releasing equity

Who Are One Family?

OneFamily is a financial services company situated in Sussex’s Brighton and Hove1 . It’s a mutual society, therefore there are no stockholders; instead, its 2.6 million members own it.
Learn more about the various One Family equity release schemes..

Scheme Background

OneFamily Lifetime Mortgage. This lender is best known for specializing in Guaranteed Over 50’s Life Cover, but now includes at, or near retirement lifetime mortgage lending to its offering.

The Interest Payment Lite plan from OneFamily is a lifetime mortgage that allows the homeowner to receive a once-off lump sum as part of their equity release scheme. It also allows the homeowner to pay up to 100% of the monthly interest that accrues on the loan for a period of time that can be set by the homeowner.

This product may be ideal for homeowners with mortgages at, or near retirement who are in need of repayment but have no repayment strategy in place. The OneFamily Interest Payment Lite Plan will enable such mortgagors to switch away from the residential mortgage market by re-mortgaging onto this OneFamily interest-only lifetime mortgage.

OneFamily was formed in 2015 through the merger of Family Investments and Engage Mutual. One Family manages more than £7.5 billion and is a trading name of Family Assurance Friendly Society, which has more than 2 million members.

Eligibility & Requirements

The OneFamily Interest Payment Lite plan provides homeowners with a straightforward one-time lump sum cash payment to spend however they see fit. This program is designed for homeowners who want one of the lowest fixed rates available and the peace of mind of knowing what their interest rate will be for the duration of their plan. They also want to make interest-only payments to keep their mortgage amount stable, leaving more equity in their home for themselves or their beneficiaries.

Minimum Property Valuation

Eligible property prices begin at £70,000 and have no upper limit; however, any property valued at more than £2 million must be accompanied by a reference.

Property Location Requirements

To be eligible, the property must be located in England, Scotland, or Wales.

Single vs Joint

For the OneFamily Interest Payment Lite Lifetime Mortgage, the qualifying homeowner must be between the ages of 55 and 100. When borrowing jointly, the loan-to-value ratio will be determined by the age of the younger applicant.

Minimum Release

The minimum loan offered on the OneFamily Interest Payment Lite range is £20000, with a countrywide maximum release of £1 million.

Scheme Features

The OneFamily Interest Payment Lite is an interest-only lifetime mortgage plan that offers an initial tax-free lump sum as well as the opportunity to make a set amount of monthly payments to assist control the eventual debt.

The sole difference between this Lite plan and the Standard version, both of which are part of the Interest Payment package, is the amount each will release via respective loan-to-value percentages. In essence, the Lite Plan will release a lesser loan amount – generally 5% less – but with a lower interest rate than the Standard plan.

The Interest Payment Lite plan allows fixed monthly interest payments ranging from £25pm to 100% of the monthly interest accrued. Payments for the Lite plan are taken by direct debit beginning the month after completion.

Homeowners can pay the interest for a year’s worth of payments, all the way up to the loan’s lifespan. However, once begun, the payment period, including the amount and length of the interest installments, cannot be modified.

Payments can be paid on behalf of the homeowner by an outside contributor under the Payment Lite Plan, however the payments must be extracted from an account in the borrower’s name.

The homeowner is permitted to skip up to four payments over the term of the Interest Payment Lite loan. If the homeowner fails to make the fourth payment, the loan is changed to either the OneFamily Lump Sum Interest Roll-up plan or the Lump Sum Voluntary Payment Lifetime Mortgage. The rate that will be applied is the interest rate that was associated with each product at the time of the initial advance.

The Payment Lite plan has a downsizing protection feature by default, which means the homeowner can sell the house and repay the loan without suffering any early repayment charges as long as the sale occurs at least five years after the first loan was issued.

Valuation Features

For homes worth less than £1 million, there is no valuation cost. The valuation charge for properties valued beyond that level varies according to the property’s worth.

Early Repayment Feature

The early repayment rates on the OneFamily Lite Plan are set for the first ten years after the advance is completed. These are 6 percent for years one through five, and 3 percent for years six through ten. Following that, no ERC applies.

Equity Release Council Status

Because they are members of the Equity Release Council, this OneFamily lifetime mortgage is transferable, and all of their plans come with a no-negative-equity guarantee. This implies that if the property is eventually sold, its beneficiaries cannot be left with a debt to the equity release lender in excess of the property’s worth.

Joint Application Features

For the OneFamily Interest Payment Lite Lifetime Mortgage, the qualifying homeowner must be between the ages of 55 and 100. When borrowing jointly, the loan-to-value ratio will be determined by the age of the younger applicant.

Scheme Options

This OneFamily Interest-Only Lifetime Mortgage allows any homeowner to spend their tax-free income as they see fit and pick a level of monthly contribution that corresponds to their affordability levels rather than that of the lenders, as would any traditional mortgage.

Homeowners can pick their amount of payment to OneFamily’s interest charges, which ranges from £25 per month to 100% of the interest paid each month. One key element of OneFamily’s Payment Lite Plan is that no proof of income or affordability is required, both pre and post-retirement age.

Additional borrowing is possible through the Interest Payment Lite, and approval is subject to the lending conditions in effect at the time of application. Six months after the original advance is finished, the extra borrowing becomes accessible. The lowest amount that may be released as extra borrowing is £4000, while the highest is the product’s maximum LTV. Homeowners are unable to convert to a program with a greater loan-to-value ratio.

Repayment Options

Homeowners can manage the future balance of their Interest Payment Lite Plan by making payments ranging from £25 per month to 100% of the interest charged. For example, in order to allow an interest-only basis and so keep a level mortgage amount, the plan would require that 100% of the interest be returned each month. Even paying a smaller monthly payment would assist to reduce the typical impacts of roll-up and keep the debt lower than it would have been otherwise.

Inheritance Protection

One family Life plan updates are still in the works. We will give an update soon.

Application Fees

One family Life plan updates are still in the works. We will give an update soon.

Cashback Options

One family Life plan updates are still in the works. We will give an update soon.

Footnotes

One family Life plan updates are still in the works. We will give an update soon.

Editor’s Rating: 4.85

One Family's Other Equity Release Schemes

Are you looking for a specific equity release scheme?

These are some of the schemes offered by One Family.

Not what you're looking for?

Have a look at all the equity release schemes available on the market, with our easy to use table!

Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui

Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.

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HOW MUCH EQUITY CAN YOU RELEASE?

Most people are using equity release as a means of retaining the use of their house while also obtaining a lump sum or a steady stream of income. Get matched with an expert and check your eligibility for equity release options.

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How Much Can You Release?

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Rachel Wait
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Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.
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Written by
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Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Written by
Katherine Read
Financial Planning Reporter

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.
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Written by
Nicola Date
Writer & Financial Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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Equity Release Calculator

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