OneFamily equity release review 2024
*Updated December 2023*
Who is OneFamily?
OneFamily has over 2.6 million customers and £7.4 billion in funds under management. It was formed from the merger of two mutuals - Engage Mutual and Family Investments - in April 2015. As a mutual, it is owned by its customers and run for their benefit, which means profits go back into the business and wider community.
OneFamily offers a range of award-winning savings, investments, insurance and lifetime mortgage products. They also offer a broader equity release advice service that compares lifetime mortgages from across the whole market, which we’ll talk about first. OneFamily is shortlisted for the 'Best Equity Release Service' in the 2023 Investment Life & Pensions Moneyfacts awards.
Is OneFamily a member of the Equity release Council?
Yes OneFamily is a member of the Equity Release Council and regulated by the Financial Conduct Authority , so its customers are protected by the rules and guiding principles of these governing bodies.
OneFamily’s equity release advice service
OneFamily’s equity release service provides independent, impartial advice on lifetime mortgages from across the whole market including Aviva, L&G, LV, Just, Pure Retirement and OneFamily’s own products.
A OneFamily specialist can advise you on whether equity release is the right solution for your circumstances and if so, they will research all available providers and recommend the one that is most suited to your needs.
In keeping with their mutual status, OneFamily’s equity release advisers earn a salary rather than working on commission, and you pay a one-off fixed fee of £750 for the advice you receive (plus the usual legal, completion and valuation fees), no matter how much equity you release.
A lifetime mortgage must be taken out through a regulated adviser. If you don’t have an adviser, OneFamily provide options for obtaining independent advice, one of which is their own advisory service. However, you are under no obligation to use it.
A note from our expert, Ashley:
This review of OneFamily equity release is one of several equity release reviews we’ve created to highlight the main providers and what they offer. These simple summaries help you compare the different companies and equity release schemes available so you can decide which, if any, may be right for you.
Does OneFamily do lifetime mortgages?
Yes, as well as providing an independent advice service, OneFamily offers lifetime mortgages which are MoneyFacts and DeFaqto-rated. Both provide a one-off lump sum for you to spend as you wish.
OneFamily lifetime mortgages also offer flexible repayment options to suit your financial circumstances and priorities.
- Interest Payment Lifetime Mortgage – lets you pay some, or all, of the interest each month. You can stop making regular payments and switch to the Interest Roll-Up with Voluntary Payment Lifetime Mortgage at any time.
- Interest Roll-Up With Voluntary Payment Lifetime Mortgage – lets you make voluntary repayments of up to 10% of the initial loan amount each year, free of any early repayment charge. This can either be as a one-off payment, or in smaller payments of £25 or more. You can reduce or stop repayments as you wish.
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Features of OneFamily lifetime mortgages
- You retain ownership and can continue to live in your home
- A choice of a 2-year fixed rate or a variable rate based on the consumer price index.
- Fixed early repayment charges
- The option to repay the mortgage in full and incur no charge after the Early Repayment Charge period ends
- If you move to a new property that is acceptable to OneFamily, your lifetime mortgage can move with you
- Any outstanding balance is repaid when you die or move into long term care
- After five years, if you sell your property you can repay the lifetime mortgage in full with no charge
- The ‘no-negative-equity’ guarantee means you won’t pass on any debt to your estate
Eligibility criteria
To apply for a OneFamily lifetime mortgage you must meet the following eligibilty criteria as a minimum:
- Minimum 55 years of age
- Maximum 85 years of age at mortgage completion
- Own a home in England, Wales or Scotland, which is your main residence
- UK resident or permanent rights to reside in the UK
- For joint applications, both applicants must have full title to the property