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 Variable 2.8% 3.00%

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 gives homeowners a one-time lump sum cash payment that they can use anyway they like. This product is designed for homeowners who want the option of choosing between variable and fixed interest rates. They also want to make interest-only payments to keep their mortgage balance stable, allowing them to save more equity in their home for themselves or their beneficiaries.

The possibility to make interest-only monthly payments without having to verify income to sustain the mortgage borrowings is the major focus of this product. Unlike a traditional mortgage, the lender merely uses the borrower’s age and property worth to establish the maximum loan size allowed. In addition, the homeowner has the option of deciding how much interest they want to pay. They can be set at anything from £25 per month to 100% of the interest charged, depending on the budget.

A base interest rate is used to determine the Interest Payment Lite interest rate (collar). Every September, OneFamily calculates the yearly Consumer Price Index (CPI) and adds it to the collared base interest rate. The interest rate that will be charged for the next 12 months is calculated by adding these two amounts together, effectively giving us a one-year reviewable fixed rate.

To prevent interest rates from rising too high, OneFamily uses an interest rate cap, which sets a maximum interest rate for the plan. This ensures that OneFamily will never go above the maximum interest rate for the duration of the contract.

Minimum Property Valuation

Property values that are eligible begin at £70,000 and have no upper limit, though any property worth more than £2 million must be accompanied by a reference.

Property Location Requirements

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

Single vs Joint

For the OneFamily Interest Payment Lite Lifetime Mortgage, the qualified homeowner must be between the ages of 55 and 100. If you’re borrowing with someone else, the loan-to-value ratio will be determined by the younger applicant’s age.

Minimum Release

The OneFamily Interest Payment Lite range has a minimum loan amount of £2000 and a maximum loan amount of £1 million available countrywide.

Scheme Features

The OneFamily Interest Payment Lite is a variable rate interest-only lifetime mortgage that offers a tax-free lump sum payment with the option of making a certain number of monthly payments.

The Interest Payment Lite plan differs from the Interest Payment Standard plan in that the loan-to-value percentages are lower at any given age. The Lite plans’ maximum loan amounts are reduced as a result of this, but they do have the advantage of lower interest rates.

The Interest Payment Lite plan accepts monthly interest payments that are pre-determined and can range from £25 per month to 100% of the monthly interest owed. Payments for the Lite plan begin the month after completion and are deducted by direct debit.

Homeowners can pay the interest for a year’s worth of payments, all the way up to the loan’s lifetime. The payment term, as well as the amount and duration of interest installments, cannot be modified once they have begun.

Payments can be made on behalf of the homeowner by an outside donor under the Payment Lite Plan, but they must be extracted from an account in the borrower’s name.

Over the course of the Interest Payment loan’s lifespan, the homeowner is allowed to miss up to four payments. If the homeowner fails to make the fourth payment, the loan is converted to a Lump Sum Interest Roll-up plan or a Lump Sum Voluntary Payment Lifetime Mortgage from OneFamily.
The interest rate that will be imposed is the one that was associated with each product at the time of the initial advance.

The Payment Lite plan comes with a downsizing protection provision, which means the homeowner can sell the home and repay the loan without suffering any early repayment fees as long as the sale occurs at least five years after the first loan was granted.

Valuation Features

For houses valued up to £1 million, there is no valuation cost to pay. The valuation cost for homes above that threshold varies depending on the property value.

Early Repayment Feature

The OneFamily Lite Plan’s early repayment rates are fixed for the first ten years after the advance is completed. For years one through five, these are 6%, and for years six through ten, they are 3%. After that, there is no ERC.

Equity Release Council Status

As members of the Equity Release Council, OneFamily’s lifetime mortgage is transferrable, and all of their plans come with a no-negative-equity guarantee. This means that if the property is sold, the beneficiaries will not be left with a debt to the equity release lender in excess of the property’s value.

Joint Application Features

For the OneFamily Interest Payment Lite Lifetime Mortgage, the qualified homeowner must be between the ages of 55 and 100. If you’re borrowing with someone else, the loan-to-value ratio will be determined by the younger applicant’s age.

Scheme Options

This OneFamily Interest-Only Lifetime Mortgage allows any homeowner to spend their tax-free money anyway they choose and to make a monthly contribution that is appropriate for their affordability levels rather than the lenders’.

Homeowners can contribute anywhere from £25 per month to 100% of the interest levied by OneFamily each month. One of the most appealing aspects of OneFamily’s Payment Lite Plan is that it does not demand any proof of income or affordability, both before and after retirement.

Additional borrowing is possible with the Interest Payment Lite, but approval is subject to the lending requirements in place at the time of application. The additional loan is available six months after the previous advance has been paid off. The lowest amount that can be released as extra borrowing is £4000, with the maximum LTV available on the deal being the maximum LTV allowed. Homeowners cannot convert to a product with a greater loan-to-value ratio.

Repayment Options

Homeowners can regulate the future balance of their Interest Payment Lite Plan by repaying between £25pm and 100% of the interest levied. For example, in order to operate on an interest-only basis and maintain a constant mortgage balance, the plan would need that 100% of the interest be repaid each month. Even paying a lesser monthly payment would help to mitigate the consequences of roll-up and keep the balance lower than it would otherwise be.

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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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
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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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