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 Review

Interest Payment Standard Key Details

Type Rate APR
One Family Variable 3.2% 3.40%

Scheme Incentives

  • Free Valuation

Scheme Offers

  • 10 Year Fixed Early Repayment Charges
  • Choice of Fixed/Variable Rates
  • Downsizing Protection Feature
  • Monthly Interest Only Payments
One Family Interest Payment Standard

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 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 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!

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 Lifetime Mortgage plan gives homeowners a one-time lump sum cash payment that they can use anyway they want. This product is designed for homeowners who are looking for the lowest feasible interest rates and are comfortable with the variable nature of the interest rate charged. They will also want to make Interest-Only payments, which will allow them to keep their balance level and leave more equity in their home than a standard roll-up plan.

Minimum Property Valuation

Property values that are eligible begin at £70,000 and have no upper limit, though any property worth more than £2,000,000 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

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

Scheme Features

The minimum interest payment is £25 and the maximum is the whole amount of interest owed. At the start of the loan, the homeowner can choose the amount of the payment as well as the length of the instalments. Unless the payment is growing as a result of a rate change, that payment amount cannot be adjusted during the payback period.

The lifetime mortgage is transferrable and comes with a guarantee of no negative equity. This means that if the home does not sell for enough to cover the complete loan sum at the time of selling, loved ones are not accountable for the difference.

The variable interest rate under the OneFamily Interest Payment Standard is determined using a base 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.

Interest payments are determined at the start of the loan and can range from £25 to 100% of the monthly interest due. The payment duration can range from one year to the whole life of the loan, but neither the term nor the amount can be changed after they have been chosen.All payments are sent by direct debit and begin the month after the advance is received. The homeowner can enlist the support of contributors to make payments, but the money must come from a bank account in the borrower’s name.

The homeowner has the option of missing up to four payments. These installments are not in any particular order, and the homeowner is only allowed to miss a total of three payments over the life of the loan. The product will be transferred to OneFamily’s Lump Sum Interest Roll-up or OneFamily’s Lump Sum Voluntary Payment Lifetime Mortgage if a fourth payment is missed. The interest rate that will be imposed is whatever the applicable product’s interest rate was at the time the initial advance was made.

The loan-to-value (LTV) for the Interest Payment Standard program begins at age 55, with a single life LTV of 21% and a joint life LTV of 20.0 percent. For people aged 85 to 100, they increase to 50% for single life and 50% for combined life. If you’re borrowing with someone else, the combined LTV is determined using the age of the youngest borrower.

Valuation Features

For properties worth up to £1 million, there is no valuation cost with this package. The valuation fee scale will apply if the home is worth more than that. If any legal fees are incurred, the homeowner is accountable for them.

Early Repayment Feature

For the first ten years after the advance is completed, the early repayment charges are fixed with this product. The price is 6 percent for years one through five, and 3 percent for years six through ten. The product does include downsizing protection, which means that if a homeowner pays off their loan as a result of selling their home and moving to a different property, they will not be charged an early repayment penalty as long as the sale and move take place at least 5 years after the advance was completed.

Equity Release Council Status

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

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

Additional borrowing is possible with this package, albeit approval is subject to lending requirements. Additional borrowing is not available to homeowners until 6 months after the previous advance has been paid off.

The least amount possible for further borrowing is £4000, while the highest amount is the product’s maximum LTV. It is not possible to switch to a product with a greater LTV. The homeowner, like the initial product, is allowed to make monthly interest payments on any additional borrowing done, and they can do so immediately after the additional borrowing is completed.

There are two types of OneFamily Interest Payment plans: Lite and Standard. They distinguish themselves based on the LTVs of each plan and the related interest rates. Because the Interest Payment Standard plan’s loan-to-values are higher than the Payment Lite plan’s, it can lend a larger maximum loan amount. As a result, due to the higher perceived risk, the Interest Payment Standard plan has a higher interest rate than the light.

Repayment Options

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

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 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
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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
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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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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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