OneFamily is the latest company to announce their intention to enter the equity release lending space. The company which is still subject to FCA approval intends to provide a flexible solution allowing customers and their families to pay some or all of the interest each month.
Whilst that particular feature is nothing new to the sector variable interest rates linked to the consumer price index is a first for the ER sector. The lender also intends to offer fixed term early repayment charges, and the option to stop paying interest and switch to another of their products.
All products are will only be available via intermediaries and will be underpinned by the Equity Release Council safeguards.
This is great news for customers as there is a particular need for solutions to the end of a traditional interest only mortgage as many people are approaching retirement still in debt with no repayment vehicle in place.
Lifetime mortgages give homeowners the chance to help their families get on the housing ladder and with around 11 million people facing inadequate retirement incomes these products can also provide funds to address the pension funding gap.
This continues the trend of several new providers offering increasingly competitive and flexible products which is likely to continue in a growing market which last year reach a new lending high of £1.6 billion.