OneFamily has announced that it has extended its two-year fixed lifetime mortgage rate offer to December 2021.
The product is available as both interest roll-up with voluntary payment and interest payment, the former option allowing borrowers to make payments of up to 10 per cent of the initial balance each year, and the latter, up to 100 per cent of the interest.
The lender reports that the average loan amount taken out via its lifetime product is north of £129,000 on properties worth over £550,000. Contrasting with the average equity release loan and property value standing at £96,000 and £350,000 respectively, OneFamily says that its offering has opened the market to wealthier homeowners.
OneFamily director of lifetime mortgages managing director Nici Audhlam-Gardiner says: “The two-year fixed rate provides advisers a new opportunity for their clients who prefer variable products but want some protection while CPI rates are higher.
“Some of the top reasons for customers to take a variable lifetime mortgage are to give money to loved ones or to make home and garden improvements.”