OneFamily has launched a new lifetime mortgage that allows the borrower to release up to 58 per cent of their property’s equity.
Further features include a maximum borrowing amount of £1m, voluntary repayments of up to 10 per cent of the initial loan each year, and ERCs that move progressively down to 1 per cent for the first eight years of the loan, starting at 6 per cent.
Currently the mortgage is only available for homeowners in England and Wales who are 65 and over. However, OneFamily manging director Nici Audhlam-Gardiner says that the lender may look at offering this to those aged 55 and over in future.
She adds that while OneFamily was exploring the release of such a product regardless, having secured a US funding partner has provided greater flexibility when it comes to developing new products and that, “plenty more new ideas are in the pipeline.
“This is the first time that the sector has attracted an investor of this type,” she says.
“This is a true innovation and an industry first. Attracting a prestigious US investor also demonstrates the growing attraction of the equity release market to investors.”
Recently, Moneyfacts revealed that there has been a five-fold increase in equity release products since 2014.