OneFamily a very welcome addition to the market

25th May 2016

People in the market for equity release have a wide variety of needs or desires. I have recently helped a 57-year-old customer release some equity to fulfil a mortgage shortfall, as well as a couple in their 80s do the same, but to fund the trip of a lifetime. Given this spectrum of circumstances and objectives, when it comes to financial matters, flexibility is extremely important.

I therefore welcome the entrance into the equity release marketplace of OneFamily. The product that they offer will allow their customers to pay off some or even all of the interest accrued every month, and to do this either for a fixed period or the life of the loan. Alternatively, they can make random capital payments or simply let the interest roll up.

Perhaps even more interestingly - and more contentiously - the OneFamily product will also feature variable interest rate pricing, although the rate will have a cap. It will include downsizing guarantees and fixed early repayment charges. There is also the opportunity for OneFamily customers to stop paying the interest and move to a different product.

Equity release is moving with the times

On a wider perspective, this news is clear evidence that equity release can innovate and develop, as indeed I believe it must to keep pace with customer needs. Other providers should, and no doubt will, follow suit. It is also important, in my eyes, that the FCA and regulators play their part in allowing and, where they can, encouraging such flexibility. A case in point is the recent announcement that lenders can ‘switch off’ affordability assessment in certain instances.

I for one welcome the entrance of OneFamily into our own equity release product family. I look forward to helping my customers by utilising its unique flexibility, as well as watching the market for further innovation through which we can better serve the financial needs of our community. Such advances can only be good for equity release and all of its customers.

Why not get in touch and see how we can help?

Equity release is the answer to so many financial questions. If you would like to know more about it, and see if it could be the right move for you, please book an appointment or request a call-back

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