Tag Archives: Equity Release Provider

Equity Release Financial Advice

After two years, the banking sector seems to have calmed down again, and whilst things have not returned to normal in regards to them lending money to home buyers, it is getting slightly better. In fact, there are now all manner of mortgages, loans and equity releasing deals becoming available. From things such as an interest only lifetime mortgage to endowments and more besides, the choice can be quite bewildering.

Therefore, it is a sensible idea to seek some form of financial advice from one or more sources. Everyone’s situation is different, and whilst re-mortgaging a home may be suitable for some people, it will be a bad idea for others.

There are many websites online which provide great, free impartial advice and these are a good place from which to do some initial groundwork. Martin Lewis over at Money Saving Expert has one such website, and it is visited by hundreds of thousands of people every week.

With the groundwork done, it is then time to get some independent advice before finally approaching a bank for a loan or other financial arrangement. An important thing to keep in mind, is that even though you may make a decision now on what scheme to use, you should really have one which gives the flexibility that it can be changed with little or no penalty.

The process is long for taking out a home equity release mortgage or reversion plan. It can take 6 to 12 weeks depending on which scheme you decide to enter into. Additionally, interest only lifetime mortgage is just one option open to you.

When you find financial advice you want to look at more than just one Internet blog, forum, or article website. It is helpful to get an idea of what you might enter into by speaking with retirees who have already gone through the process. It is also in your best interest to search around and see what myths might have appeared on various sites. In this way you can ask your adviser what is factually accurate and understand why there might be a little confusion over the entire matter.

When home reversion was first announced to the market a lot of misunderstandings appeared online. One of the biggest misunderstandings was about selling your home and then having to pay rent to the new owner just to remain in the home. Actually, what happens is that you sell a part or all of your home to an equity release provider and obtain a lifetime tenancy agreement in return stipulating no rent is required as long as you live in the house. It is only when you and anyone named in the contract move out that the house has to be sold.

As you can see from the above explanation, there is definitely cause for misunderstandings which leads to a definite need to seek proper financial advice. The interest only lifetime mortgage is an actual mortgage where the principle balance is due at your death or when you decide to move out of your home. This can mean your home has to be sold to cover the mortgage. The good news is you have paid interest towards the loan balance, so the only amount left at the time the house is sold is the principle.

Since you will have different steps to the home equity release process, you will want to have advice along the way. Here are some of the steps you might want advice on:

1. Post-groundwork advice when you have read all you can about equity release schemes and particularly about an interest only lifetime mortgage is beneficial. Advice clears up any points of worry you might have.
2. An application is required to determine if you qualify for any equity release option. It can be a good idea to explore the application with the help of an adviser to read through some of the legal jargon.
3. The next stage is even more imperative with regards to advice as it stipulates the true point of decision making. Once you are approved for a plan or plans, it is time to decide what your best option is for you and your remaining family. Here legal and financial advice on potential pitfalls can be golden.

Interest only lifetime mortgage plans are there to help you as a retiree to live your life in comfort with minimal worries. An adviser in this financial market ensures you go in with your eyes open before signing any contracts.

Why is Stonehaven Becoming Such a Dominant Equity Release Provider?

The Halifax Retirement Home Plan allowed those over 65 years to borrow a maximum of 75% of the value of their home. They were required to only pay the interest. The amount borrowed was repaid when the property was sold after their death. Halifax however stopped this plan due to the fact that it was just a small percentage of its intermediary business. Since Halifax withdrew their Retirement Home Plan, a massive void has been created for pensioners who are seeking interest only lifetime mortgages. Some pensioners are still searching online for the Halifax Retirement Home Plan. There is now an answer in Stonehaven equity release plans.

Stonehaven equity release plans have been able to fill this void. The equity release schemes offered by Stonehaven are very similar to the Halifax Retirement Home Plan; however, these plans are available to those who are over 55 years. Stonehaven is currently one of the most popular equity release providers due to the benefits it provides to home owners. The amount they lend on interest only is solely based on age and property value. NO income requirement is made; therefore, it could be classed as a self cert mortgage, rare in today’s times.

First of all, Stonehaven guarantees no negative equity. This means that your property will be sold for the best price obtainable to repay the initial loan amount. However, if the amount obtained for the property is not sufficient to repay the initial loan amount and the solicitor’s fee, Stonehaven will not ask your beneficiaries to pay the extra costs. You are therefore guaranteed to never have to pay more than the value of your property, a major relief for your beneficiaries.

Stonehaven also guarantees portability which means that if you move to a new property which meets the requirements of Stonehaven equity release plans, your existing equity release plan with the same terms and conditions can be transferred to your new property. If your new property is lower in value compared to your previous property, you will have to repay a portion of the loan. However, if your new property is higher in value than your previous property, you can choose to increase your loan.

Other benefits the equity release schemes of Stonehaven are:

• One fixed interest rate for the entire duration of the loan
• Repayment is only required after your death or after you have moved into long-term care
• You retain full ownership of your property until it is sold

Stonehaven is not the only mortgage provider for equity release schemes. You have a variety of other options; however, they may not offer these same benefits. The fact that they have an interest only mortgage where other companies may not makes them an interesting party in the lifetime mortgage industry.

Stonehaven certainly filled a void in the interest only sphere. In most cases when you come across an interest only mortgage you have to pay the interest back with disposable income. It means unless you can prove you have extra income that you can use towards the mortgage you may be denied for the plan.

In the event you find some worrying disadvantages with the Stonehaven plan or you do not like the interest only option, you have other plans to choose from. Stonehaven equity release plans provide you a myriad of choices from standard equity releases for retirees to drawdown plans. With these options you either take a lump sum paying no interest until the end of your life or removal to a care facility, or you take money as needed with the same benefit of paying after death with the sale of your home or when you move out to a long term care location.

As you shop around, compare, and search for the plan that seems most helpful to your situation, consider the inheritance you will leave for families. Your family may want to keep the family home or they may appreciate cash upon your demise. If your family is really attached to your home they may not appreciate you selling it for a retirement mortgage like the Stonehaven equity release plans in discussion here. They may want to move in with you or supply you with funds during your retirement to ensure your home remains in the family.

These options might not be open to you and your family. It is still a good idea to discuss what you might do financially to ensure they understand the potential burden they will face. Speak with a financial adviser at Stonehaven too as a way of finding out more about Stonehaven equity release plans.