Stonehaven Equity Release may have cheered up those disappointed by the withdrawal of the Halifax Retirement Home Plan. The news isn't all as bad as it seems. EquityRelease2go.co.uk has access to further interest only lifetime mortgages covering England, Scotland & Wales; so no matter your location we can potentially assist with any enquiries.
For people in England & Wales we have several building societies who can lend on an interest only basis; however the market is becoming limited with the regulation of interest only mortgages by the FSA (Financial Services Authority). These lenders will need to ensure that affordability is key; hence income throughout retirement must be proved in order to support any application.
However, the most popular interest only lifetime mortgage is through a traditional equity release company who offer the facility to repay the interest charged. The Stonehaven Interest Select plan is unique in the equity release marketplace as it halts the roll-up effect of interest & thus maintains a level balance for the whole term of the mortgage. As this is an interest only lifetime mortgage, as long as payments continue for life, then the balance on day 1 will be exactly the same balance on final repayment at the end for the beneficiaries.
This could be excellent news for applicants who wish to protect the inheritance they have built up over their working lives & don't wish to see it eroded by the roll-up equity release schemes.
Why use EquityRelease2go.co.uk for mortgage advice?
By consulting with an experienced & qualified equity release adviser such as EquityRelease2go.co.uk you will get impartial advice on such schemes as the Stonehaven Interest Select plan & not just the roll-up options. EquityRelease2go.co.uk offer whole of market advice & therefore deal with all equity release schemes currently in the market & obtain special rates & deals from some of the market leading equity release companies & mortgage lenders with household names such as Aviva, Just Retirement & LV=.
Stonehaven Equity Release have been providing innovative equity release solutions for over 5 years now & are regulated by the FSA & also are members of SHIP (Safe Home Income Plans) which provide an extra layer of protection to potential equity release applicants. As Stonehaven meet SHIP standards, you can be assured that you can repay the equity release scheme early, have the protection of the no negative equity guarantee & transfer it to a new property should you decide to move house in the future.
Furthermore, the Stonehaven equity release plan has an added advantage over conventional mortgage lenders. The concern for recent applicants of the Halifax Retirement Home Plan was the decision on movements of future interest rates. With the Halifax Retirement Home plan the initial product selected will only last a set number of years at which point the interest only lifetime mortgage will revert to the Halifax standard variable rate. Should interest rates rise significantly in the future, this could have a significant effect on affordability of this mortgage & with pensioner incomes being fixed, could cause affordability issues.
Not so with the Stonehaven Interest Select plan.
The innovative interest only mortgage version by Stonehaven equity release has a FIXED interest rate for the rest of the plan term. Therefore no matter what happens to Bank of England interest rates, the monthly payments are guaranteed to remain exactly the same from outset to the finish. This provides great reassurance for the retired population on a fixed, albeit indexed related income.
Additionally, unlike the Halifax Retirement Home Plan there can never be a chance of repossession due to non payment of mortgage interest only premiums. The Halifax theoretically could enforce repossession in the future should mortgage arrears occur & consequently a black mark on anyone’s credit report.
Not so with the Stonehaven Interest Select plan.
Their interest only lifetime mortgage has a unique ‘contribution’ towards the payment of the interest element. Stonehaven permit any monthly contribution starting from £25pm upto the full interest charged. Therefore, you can set your budget accordingly from the outset knowing how much you pay now & into the future.
Not only that, but should you ever come upon hard times financially in the future, then you can opt with Stonehaven equity release to switch from interest only basis onto a roll-up equity release scheme. This is reassuring for many whom cannot predict affordability in the future & therefore have security of knowing they can remain in the property for the rest of their lives. This cannot be said for the Halifax equity release retirement plan.
Therefore, by agreement with Stonehaven equity release the monthly payments can stop & instead the interest charged is added to the mortgage balance. If agreement for this switch has not been agreed at outset then a small increase on the interest rate charged of 0.2% extra; a small price to pay for so much reassurance for life.
To speak to an Stonehaven equity release specialist please call 0800 678 5159 today.
