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|Equity Release Supermarket welcomes new low rate lifetime mortgages from OneFamily|
|Friday, 20 May 2016|
Leading equity release specialist, Equity Release Supermarket, is welcoming the new ‘OneFamily’ lifetime mortgages as the volume of maturing Interest Only mortgages ramps up. Mark Gregory, founder of Equity Release Supermarket believes the ground-breaking ‘OneFamily’ mortgages provide an important lifeline for homeowners facing the dilemma of finding funds to pay the balance on maturing Interest Only mortgages.
“The Interest Only mortgages that were pushed in the early ‘90’s and beyond are now maturing for many homeowners – and creating a new dilemma in how to fund the final payment. Whilst the recent news of some lenders extending the age bracket to 85 for selected mortgage holders is providing one option, this solution won’t be suitable for everyone. It’s therefore great news to see the launch of the new ‘OneFamily’ products which provide better affordability. With rates starting at 2.96% MER, which puts them on a par with traditional mortgages, and the option of both repayment and no repayment options, there’s no fear of repossession with these true lifetime products. I believe this is a significant development for the market.”
The new ‘OneFamily’ lifetime mortgages provide loans from £10,000 to £500,000 at competitive variable and fixed interest rates, secured against an existing property for homeowners aged 55 and above. Products include:
· Interest Roll-Up Lifetime Mortgage – providing a lump sum advance, with the interest added to the mortgage balance each month. No payments are made for the lifetime of the loan.
· Voluntary Payment Lifetime Mortgage - based on a voluntary payment of up to 10% of the original balance each year, with unlimited payments throughout the year.
“We believe lifetime mortgages have a genuine role to play in the evolving homeowning marketplace”, added Georgina Smith, Managing Director, OneFamily Lifetime Mortgages. “The growing proportion of the population with maturing Interest Only mortgages need better options than have been offered to date. And whilst the extending of the age bracket for some mortgages is certainly to be welcomed, this isn’t the answer for everyone.
“Lifetime mortgages provide greater flexibility and control for Interest Only mortgage holders. But, to date, they have not been offered at rates on a par with traditional mortgages. We’re changing that with our new ‘OneFamily’ products that take away the headache of finding the funds for maturing Interest Only mortgages and without the fear of repossession.”
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