Financial mutual OneFamily has extended its lifetime mortgage range, increasing its number of products from four to six.
The two new additions are flexible interest-rate paying products which allow borrowers to choose how much interest they pay, and for how long.
Lifetime mortgages are frequently offered to parents or grandparents looking to raise the money for deposits on houses for children and grandchildren.
OneFamily says it intends to ‘work flexibly across the generations to help families achieve their financial goals’.
“Our new products mean consumers can repay up to 100% of the interest on the loan at either a variable or fixed interest rate, in the same way you would with a mainstream interest only mortgage,” explains Georgina Smith, OneFamily managing director.
The organisation says that if the consumer chooses to fix their monthly maximum interest rate and if interest rates increase above the agreed figure, any additional interest will be added to the original loan and would be paid back at the end of the term.
“We have included the option to make payments at a set percentage of the interest due or a set amount, and consumers can also choose to stop making the payments if their circumstances change,” adds Smith.
“At this point they will have the choice to switch to one of our other Lifetime Mortgages, such as our interest roll-up or voluntary payment products.”
Simon Markey, OneFamily chief executive, says: “OneFamily was created to help families to work together to manage their finances.”
“Our new products will enable the whole family to come together to decide how best to manage their Lifetime Mortgage, including how the interest payments will be met.”
These will also be the first lifetime mortgage products to be added to the approved lenders list of the Mortgage Intelligence network.
Sally Laker of Mortgage Intelligence comments: “By adding OneFamily’s new Lifetime Mortgages to our panel, we are keeping our advisers ahead of the curve and providing them with the best products for their clients.”