The mutual announced the introduction of two new products, including an interest roll up deal with fixed and variable rates, earlier this month.
Mark Gregory, founder of Equity Release Supermarket, said: “The interest-only mortgages that were pushed in the early ‘90s and beyond are now maturing for many homeowners – and creating a new dilemma in how to fund the final payment,” said Gregory.
“While 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. “
Rates on the OneFamily products begin at 2.96%, on par with traditional mortgages, and Gregory believes this will remove the fear of repossession for interest-only mortgage holders.
The mortgages are available for sums of between £10,000 and £500,000 secured against an existing property for homeowners aged 55 and over.
