One Family Lump Sum Standard
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One Family Lump Sum Standard Review
Lump Sum Standard Key Details
| Type | Rate | APR | |
|---|---|---|---|
 |
Variable | 3.2% | 3.40% |
Scheme Incentives
- FREE Valuation
Scheme Offers
- 10 Year Fixed Early Repayment Charges
- Choice of Fixed/Variable Rates
- Downsizing Protection Option
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 Lump Sum 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.
- Detailed information about the Lump Sum Standard scheme.
- Whether this plan could be right for you and your family.
- How low the current interest rates are for the Lump Sum Standard product.
What's Equity Release & How Does It Work?
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.
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: What’s Equity Release & How Does It Work?
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Most popular reasons for releasing equity
- Add to your retirement income.
- Pay off your credit debts or loans.
- Gifting money to family. (E.g. helping children pay a deposit on their first house)
- Paying off an existing debt.
- Going on that dream holiday.
- Replacing your car with the one you've always wanted.
- Making home & garden improvements.
Who Are One Family?
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 Roll-up Lifetime Mortgage plan gives homeowners a one-time lump sum cash payout that they can use anyway they want. This product may be aimed at homeowners who want the lowest rates feasible but don’t want to make payments and are content to watch the interest accumulate. This product may be excellent for those who have mortgages that are due for repayment at or near retirement but have no plan in place to pay them off. We can also envision the product being used in IHT mitigation exercises and by persons who are familiar with the ramifications of fluctuating interest rates.
Minimum Property Valuation
OneFamily Equity Release will consider applications with a minimum property worth of £70,000 and no maximum property value.
Property Location Requirements
The property in question must be the primary residence and must be in England, Wales, or Scotland. It must be either a freehold or a leasehold property with an unexpired term of at least 155 years minus the youngest applicant’s age, or 75 years, whichever is larger.
Single vs Joint
This OneFamily Roll-Up Equity Release plan is available for single or joint life. The youngest applicant must be 55 years old, with a maximum age of 100 years at the time of entry.
Minimum Release
OneFamily will accept a loan of £10000 as a minimum, with a maximum discharge of £750000 at this time.
Scheme Features
The OneFamily Lump Sum Standard scheme is a lifetime roll-up mortgage plan with one of the lowest interest rates in the OneFamily portfolio. The Standard equity release plan from OneFamily provides a one-time tax-free capital amount that the applicant can use for whatever.
The headline interest rate, which brings equity release interest rates in line with residential mortgages, is the major focus of this product. Homeowners can choose between fixed and variable interest rates for the first time in the equity release market, based on their preferences. The launch of the OneFamily variable interest rate equity release product is a big step forward for the equity release market, giving consumers more options.
A base interest rate is used to determine the Lump Sum Standard 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.
One family Life plan updates are still in the works. We will give an update soon.
Valuation Features
One family Life plan updates are still in the works. We will give an update soon.
Early Repayment Feature
The set early repayment charges are another attractive characteristic of these Lump Sum Interest Roll-Up Lifetime Mortgages (ERC). OneFamily only charges an ERC for the first ten years after the equity release loan’s start date. The ERC starts at 6% for the first five years, then drops to 3% for the next five years, and then there is no penalty after that.
Equity Release Council Status
Because OneFamily is a member of the Equity Release Council, all of their fixed and variable rate plans are protected by the No Negative Equity Guarantee, which ensures that beneficiaries never owe more than the property’s value and, as a result, owe nothing to the lender.
Joint Application Features
This OneFamily Roll-Up Equity Release plan is available for single or joint life. The youngest applicant must be 55 years old, with a maximum age of 100 years at the time of entry.
Scheme Options
The OneFamily Lump Sum plan does not have a voluntary repayment option, although partial repayments are allowed with a minimum of £1000 and a minimum amount of £10000. Depending on which year the repayment is made, any repayments made on this basis may be subject to an early repayment charge (see later).
Should more equity be required to be withdrawn for personal use in the future, OneFamily allows for extra borrowing. This is accessible 6 months after the initial advance was made, and it will be subject to underwriting guidelines at that time. It is not possible to switch to a different product without totally remortgaging the plan.
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
*For a limited time only, we are offering a free valuation on property appraisals up to £1 million (pro-rata thereafter).
One Family's Other Equity Release Schemes
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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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