OneFamily launch new equity release plan
A new lifetime mortgage plan now offers older borrowers the highest loan-to-value (LTV) equity release on the market: 58%.
Lifetime mortgages are a fast-developing way for home-owners to access the value of their homes. In the UK in 2018 almost £4 billion of equity was released in this way: an increase of nearly £1 billion over the previous year.
This is a response to the fact that, as a nation, we are under-savers. The average UK pension pot at retirement age is £28,000, and one in eight people who retired in 2018 had no pension at all.
The need for retirement funding
The majority of equity release products on the market offer LTVs of up to around 50%: if your home is valued at £360K you may be able to access £180K in funds.
The introduction of Retirement Interest Only (RIO) mortgages last year provided an alternative option for people approaching retirement age to get property finance extending past their earning age, at levels comparable to traditional mortgage LTVs (60%, and up to 75% LTV with a mixture of interest-only and repayment).
A higher level of borrowing
This new product comes into the gap between the lower LTVs of most lifetime mortgages, and RIO mainstream mortgages, to meet the needs of property owners who need to borrow more: either to top up their day-to-day living expenses, or help out younger family members.
The 58% LTV of the OneFamily SuperLTV Lifetime Mortgage is the highest LTV ratio currently on offer. Homeowners can borrow up to £1M, and if they’re able to they can make overpayments of up to 10% of the initial loan amount per year.