OneFamily has increased its loan to values on its lifetime mortgage by 0.5 percentage points.
The maximum LTV on this ‘Super LTV’ product will now range from 40.5 per cent to 58.5 per cent, depending on the age of client, with the higher LTVs reserved for older borrowers.
As part of this product refresh OneFamily has also reduced its interest rates and introduced a new 2 per cent cashback option on this mortgage deal.
The fixed rate has been reduced from a monthly equivalent rate of 6.29 per cent to 6.09 per cent. OneFamily says that this new rate gives the product an AER of 6.26 per cent.
The lifetime mortgage also has an arrangement fee of £595.
OneFamily says these changes mean it now offers one of the highest LTVs in the market. While interest rates for lifetime mortgages start at 3 per cent, these are not available on higher LTV deals. OneFamily its rate remained competitive for borrowers releasing more equity from their home.
OneFamily’s head of lending, Paul Bridgwater says: “We’ll continue to provide advisers with all the product information and support they need through our online lifetime mortgage knowledge hub or helpline which has direct access to our underwriters.”
He added that the combination of higher LTVs and a cashback deal means that customers can realise more value from their homes, while still being protected by the no negative equity guarantee, which is a requirement of all equity release lifetime mortgages.