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Mutual OneFamily to enter lifetime mortgage market

  • 06/04/2016
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Mutual OneFamily to enter lifetime mortgage market
OneFamily, the mutual created by the merger of Family Investments and Engage Mutual, is preparing to launch a range of intermediary-only lifetime mortgage products to allow families to protect their inheritance.

The product range, which is subject to regulatory approval, will be designed to allow customers and their families to pay some or all of the interest each month, helping to avoid the impact of rolled-up interest when the borrower dies or has permanently left the property.

Variable interest rate pricing will also be an option, in addition to a down-sizing guarantee, simple fixed-term early repayment charges and the ability to stop paying interest and switch to one of OneFamily’s other products.

A family member contribution feature in the affordability assessment for the deals will also allow advisers to tailor the solution to the needs of clients and their families.

The mutual’s proposition will be led by Georgina Smith (pictured), who has been appointed managing director of lifetime mortgages. Smith previously worked as both CEO and sales and marketing director at Stonehaven.

Smith said: “Our unique proposition recognises that many people approaching retirement with interest-only mortgages will be coming to the end of that product, still in debt, yet unable to remortgage to pay that down. Our products will solve that problem ensuring that people can stay in the homes that they love with manageable finance they are able to afford.”

Andrea Rozario, chief corporate office at Bower Retirement Services, praised the announcement explaining that involving the family in equity release deals is “heavily encouraged”.

“I’m sure the whole industry will be interested to see exactly what the family- focused products and the underwriting will look like. Lower interest rates, flexibility and increased choice are all great news for customers and there is a particular need for solutions for people facing the end of an interest-only mortgage as equity release can offer a lifeline to some in this predicament,” she said.

“For some customers an ability to protect an element of equity to pass on to family in later years is important while for others releasing property wealth enables them to help their family members immediately.”

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