One Family Interest Payment Standard

Are You Considering the Interest Payment Standard 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 Standard Scheme Review

Interest Payment Standard Key Details

Type Rate APR
One Family Fixed 4.79% 5.1%

Scheme Incentives

  • Free Valuation

Scheme Offers

  • Fixed or Variable Rates
  • Downsizing Protection
  • Monthly Interest-Only Payments

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 Standard, equity release scheme the best?

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

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

However, it’s important to remember that 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 Standard 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!

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.
One Family Interest Payment Standard

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 Standard plan gives homeowners a one-time lump sum cash payment that they can use as they like. This program is designed for homeowners who want to lock in one of the lowest fixed rates available and have the peace of mind of knowing what their interest rate will be for the life of their loan. 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.

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 Standard 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 Standard range has a minimum loan amount of £2000 and a maximum loan amount of £1 million available countrywide.

Scheme Features

The OneFamily Interest Payment Standard is an interest-only lifetime mortgage that combines a tax-free lump sum payment with the opportunity to make a certain number of monthly payments to assist control the balance in the future.

The only difference between this Standard plan and the Lite version, both of which are part of the Interest Payment suite, is the amount each will release via their loan-to-value percentages. In essence, the Standard Plan will release a larger loan amount – typically 5% more – but the outcome will be a higher interest rate than the Lite plan.

The Interest Payment Standard plan takes monthly interest payments that are pre-determined and can range from £25 per month to 100% of the monthly interest owed. Payments for the Standard plan begin the month after completion and are taken 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 paid on behalf of the homeowner by an outside contributor under the Payment Standard Plan, but they must be taken from an account in the borrower’s name.

Over the course of the Interest Payment Lite loan’s term, 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 Standard plan has 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 loan was advanced.

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 Standard 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 Standard 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 Standard Plan is that it does not demand any proof of income or affordability, both before and after retirement.

The Interest Payment Standard allows for additional borrowing, however approval is subject to the lending conditions in place at the time of application. The additional loan is available six months after the previous advance has been paid off. The least amount that can be released as additional borrowing is £4,000, with the highest amount being the product’s maximum LTV. Homeowners cannot convert to a product with a greater loan-to-value ratio.

Repayment Options

Homeowners can manage the future balance of their Interest Payment Standard 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.

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.

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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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