OneFamily equity release plans 2021 | Rates from 2.84% - Finder UK

OneFamily equity release review 2021

Discover OneFamily's range of equity release plans and uncover the pros and cons with this in-depth review.

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OneFamily
Table: sorted by the lowest AER.
Data updated regularly
Name Product Product type Maximum LTV Monthly rate Annual rate (AER)
Interest Payment Roll-Up Lite Variable
Interest only
29.5%
2.8%
2.84%
Lump Sum Roll-Up Lite Variable
Lump sum
29.5%
2.8%
2.84%
Lump Sum Roll-Up Standard Variable
Lump sum
33%
3.2%
3.25%
Interest Payment Roll-Up Standard Variable
Interest only
33%
3.2%
3.25%
Interest Payment Roll-Up Lite Fixed
Interest only
29.5%
4.34%
4.43%
Lump Sum Roll-Up Lite Fixed
Lump sum
29.5%
4.34%
4.43%
Lump Sum Roll-Up Standard Fixed
Lump sum
33%
4.79%
4.9%
Super Lump Sum Roll-Up Fixed
Lump sum
45%
6.29%
6.47%
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Data updated regularly
Name Product Product type Maximum LTV Monthly rate Annual rate (AER)
Interest Payment Roll-Up Lite Variable
Interest only
28.5%
2.8%
2.84%
Lump Sum Roll-Up Lite Variable
Lump sum
28.5%
2.8%
2.84%
Lump Sum Roll-Up Standard Variable
Lump sum
32%
3.2%
3.25%
Interest Payment Roll-Up Standard Variable
Interest only
32%
3.2%
3.25%
Interest Payment Roll-Up Lite Fixed
Interest only
28.5%
4.34%
4.43%
Lump Sum Roll-Up Lite Fixed
Lump sum
28.5%
4.34%
4.43%
Lump Sum Roll-Up Standard Fixed
Lump sum
32%
4.79%
4.9%
Super Lump Sum Roll-Up Fixed
Lump sum
45%
6.29%
6.47%
loading

Compare up to 4 providers

To understand the features and risks of lifetime mortgages, ask for a personalised illustration from a lifetime mortgage company. Check that this type of mortgage is suitable for your needs if you plan to move or sell your home or you want your family to inherit it. If you're not certain, seek independent advice. Your home may be repossessed if you do not keep up repayments on your mortgage.
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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
OneFamily is an award-winning financial services provider, mostly specialising in savings products, such as ISAs and child trust funds.

However, it also provides lifetime mortgages for those looking to release equity from their home.

How does a lifetime mortgage work?

A lifetime mortgage is a loan secured against your home, on which you’re not required to make repayments until you die or move into long-term care.

You’ll need to have paid off or almost paid off your existing mortgage to be eligible for one.

Because no repayments are made, interest can compound very quickly. However, it’s not possible for you to owe the lender more than the value of your home.

The maximum advance offered to you will depend on your age, the value of your home and the equity available to release.

Some lifetime mortgages allow you to make early repayments without facing an early repayment charge, in specific scenarios.

When all homeowners are dead or moved into long-term care, the loan will be repaid out of their estate.

Am I eligible for a OneFamily Lifetime Mortgage?

To be eligible for a OneFamily Lifetime Mortgage, you’ll need to meet the following criteria:

  • Be aged between 55 and 85.
  • Live in your own home in England, Wales or Scotland, with a small mortgage or no existing mortgage.
  • Live in a property worth at least £70,000.
  • Borrow at least £10,000.

OneFamily has an online calculator on its website that will provide an estimate of how much you’ll be able to borrow. This will be dependent on the value of your home and your age.

Is OneFamily equity release safe?

Lifetime mortgages are regulated by the FCA, and there’s no danger of falling into negative equity.

You’ll have to arrange your OneFamily mortgage with the help of a financial adviser. You’ll pay a fixed fee of £750 for a OneFamily financial adviser.

The main danger is your compound interest building up very quickly, meaning there is little left of your estate to pass on to your heirs.

How to apply

To begin your application, call 0800 144 8244 or request a callback via onefamily.com.

The application process is somewhat long-winded. It consists of a free initial consultation, discovery appointment and recommendation appointment before your adviser suggests the best lifetime mortgage for your needs.

Pros and cons

Pros

  • The eligibility criteria are fairly relaxed compared to other lenders.
  • You’ll pay a flat rate of £750 for financial advice. That’s particularly reasonable if you’re taking out a large loan.

Cons

  • Interest can compound quickly, leaving little for your beneficiaries after you die.
  • There is little information available about the fees, charges and rates available with OneFamily lifetime mortgages.

Our verdict

This lender isn’t particularly well-known, especially in the mortgage space, and there’s little information available as far as what fees you’ll pay or what your interest rate will be.

As such, it’s difficult to compare this product to others on the market.

Frequently asked questions

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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