Compare One Family Equity Release Quotes Against The Market

OneFamily is a prominent UK financial services provider with a distinct identity: it's a mutual organisation. This means it is owned by its customers (members) rather than by shareholders. This customer-first ethos is central to their brand, which offers a range of products from ISAs and bonds to over-50s life cover and, notably, lifetime mortgages.

If you’re looking for bespoke quotes from OneFamily and independent advice about their products and services, you can get started with one of our brokers below.

What is OneFamily Equity Release?

OneFamily offers lifetime mortgages, the most common type of equity release. This allows homeowners aged 55 and over to unlock a tax-free cash sum from their property's value. The loan, plus the interest, is then repaid from the sale of the home when the last borrower passes away or moves into permanent long-term care.

OneFamily provides both:

• Lump Sum Lifetime Mortgage: You take your full loan as a single, one-off payment. Interest is charged on the entire amount from day one.

• Drawdown Lifetime Mortgage: You take a smaller initial sum and place the rest in an approved, pre-agreed reserve. You can "draw down" from this reserve as and when you need to. The key benefit is that interest is only charged on the funds you have actually released, which can significantly reduce the overall cost of the loan.

Key Features of OneFamily Equity Release

As a member of the Equity Release Council, all of OneFamily's plans come with a core set of protections and features:

• No Negative Equity Guarantee: You will never owe more than the value of your home, regardless of how much the interest compounds or what happens to house prices.

• Voluntary Repayments: You can make penalty-free partial repayments (typically up to 10% of the initial loan amount) each year. This is a crucial feature that allows you to manage the loan, reduce the impact of compounding interest, and protect your home's remaining equity.

• Downsizing Protection: If you decide to move to a new, smaller property after a set period (usually five years), OneFamily will allow you to repay your loan in full without incurring an Early Repayment Charge (ERC).

• Portability: You have the right to move home and take your lifetime mortgage with you, provided the new property meets the lender's criteria.

OneFamily Equity Release Interest Rates

OneFamily offers fixed-for-life interest rates on its lifetime mortgages. This is a significant benefit as it provides absolute certainty that your rate will never increase for the entire duration of your loan.

Their rates are competitive within the market. The specific rate you are offered will depend on your age, property value, the amount you wish to borrow (LTV), and the specific product you choose.

Eligibility Criteria

To be eligible for a OneFamily lifetime mortgage, you will typically need to meet the following criteria:

• You must be aged 55 or over (for joint applications, the youngest applicant must be 55).

• You must be a homeowner in mainland England, Wales, or Scotland.

• Your property must be your main residence and be valued at a minimum of £70,000.

• The loan must be used to clear any existing mortgage or secured loan on your property before you can take any remaining funds.

• The minimum loan amount is generally £10,000 (or £20,000 for their Super LTV plans)

OneFamily Equity Release Reviews

OneFamily generally receives very positive reviews, often scoring highly on platforms like Trustpilot. As a mutual, its customer service is frequently praised as being friendly, clear, and supportive. Customers and advisers often highlight the simplicity and transparency of their products and the flexibility provided by their voluntary repayment features.

Pros and Cons of OneFamily Equity Release

Pros:

• Customer-Owned Mutual: Their mutual status means their focus is on members rather than external shareholders, which many customers find reassuring.

• Excellent Customer Service: Consistently receives high praise for its support teams.

• Flexible Features: The 10% voluntary repayment option and downsizing protection are valuable, standard features.

• Fixed-for-Life Rates: Provides long-term financial certainty.

Cons:

• Standard Drawbacks: The plan has the same cons as all lifetime mortgages: the interest compounds and will reduce the value of your estate, which impacts your beneficiaries' inheritance.

• May Not Be the Cheapest: While competitive, their rates may not always be the absolute lowest on the market compared to some of the larger, non-mutual lenders.

• No Enhanced Plans: Unlike some specialist lenders, OneFamily does not typically offer enhanced (medically underwritten) plans, which might provide larger loans to those with health conditions.

How to Apply for OneFamily Equity Release

You cannot apply for a OneFamily lifetime mortgage directly. It is a legal requirement that you first seek professional financial advice from a qualified equity release adviser. The adviser will assess your complete financial situation, discuss all your alternatives, and search the whole market to confirm if a OneFamily product is the most suitable one for your specific needs.

Get started here to begin a free, no-obligation chat with an equity release adviser who specialises in OneFamily’s product range and can help you access their deals.