Posts Tagged ‘Equity Release Adviser’
Monday, January 30th, 2012
Following on from the post on Friday regarding Aviva reducing its equity release interest rate on their Lifestyle Flexi plan (drawdown scheme), another lender has now followed suit.
LV= (Liverpool Victoria) today advised that it is also to drop its rates with effect from 1st February 2012 on both its Lifetime Mortgage – lump sum plan & the Flexible Lifetime Mortgage – drawdown scheme.
The corresponding rates are as follows: -
- Lifetime Mortgage – lump sum – 6.39% (6.60% APR)
- Flexible Lifetime Mortgage – 6.49% (6.8% APR)
Although interest rates are higher than the two largest providers – Aviva & Just Retirement, LV= do have some quality features that make it stand out from the crowd.
Firstly, their early repayment charges are fixed. This means that there is no link to gilt rates as the basis for the early repayment charge calculation, like Aviva & Just Retirement do.
LV=’s early repayment charges are known from the outset & are 5% in the first 5 years & 3% in the next 5 years. For some this can be reassuring news should their circumstances change in the future & early repayment is necessary.
LV= also allow partial repayments, subject to a minimum of £5,000 so if you are looking to work around potential early repayment this can be planned accordingly.
Equity Release Supermarket currently receive a free valuation with LV= with no current deadline. So now is as good a time as any to be considering an equity release application with the recent interest rate reductions across the board.
If you wish to obtain a quotation or advice on any of the LV= equity release schemes, please call our freephone 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
Tags: Aviva, drawdown equity release, early repayment charges, equity release, Equity Release Adviser, Equity release interest rates, equity release schemes, Equity Release Supermarket, free valuation, lifetime mortgages, LV=
Posted in Uncategorized | No Comments »
Friday, January 27th, 2012
With the latest round of equity release rate reductions, it seems both Aviva & Just Retirement are vying for top spot.
Currently, Just Retirement lead the way with their round of reductions a few weeks ago at a market leading 6.2% annual rate.
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However, Equity Release Supermarket have been notified that with effect from next week the Aviva flexi drawdown plan is set to become the market leader again by usurping Just Retirement with a reduction of 0.12% to a new market leading rate of just 6.1% annual rate.
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Mark Gregory – Director & founder of Equity Release Supermarket comments – “This is excellent news & the price war has been long awaited. Equity release interest rates have been in the doldrums recently compared to mainstream interest rates. We are getting back to rates from a few years ago & that sub 6% barrier is now not too far away. This new Aviva rate is exclusive with further benefits of a free valuation & an excellent £500 cashback on completion for the client. With gilts rates so low at present, now is as good time as any to be considering taking out an Aviva Equity Release plan.”
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Equity Release Supermarket are one of the leading independent equity release advisory firms in the UK currently & can be found on their informative website http://www.equityreleasesupermarket.co.uk.
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If you require information on the new Aviva Flexi deal please call 0800 678 5159 where one of the equity release team would be willing to assist & provide further details.
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Tags: Aviva, drawdown equity release, equity release, Equity Release Adviser, Equity release interest rates, equity release schemes, Equity Release Supermarket, Just Retirement, Roll up lifetime mortgage
Posted in Equity Release, News | No Comments »
Friday, January 6th, 2012
Products come, & products go; & we have seen the evidence of this by the unfortunate withdrawal from the mortgage market in August 2011 of the Halifax Retirement Home Plan.
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The global financial crisis has been challenging for many, and retired people or those looking to retire have seen a large amount of value disappear from their pensions. This can be stressful and causes worry, but finance options are still available for those looking to supplement their retirement. Equity Release Supermarket has access to market leading interest only mortgages which are available only to people over the age of 55 & looking for ways to finance their retirement.
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An example of such is the interest only lifetime mortgage is the Stonehaven Interest Select Plan. This is a unique and innovative option for many looking for additional financial relief in their retirement, but mindful of any inheritance that they wish to pass onto the heirs. Thus pensioner mortgages are now fully available to anyone over 55 & owning their own home.
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The innovative Stonehaven Interest Select equity release scheme is unique among interest only mortgages as the total outstanding balance does not change. Instead of the interest rolling up like traditional equity release schemes, the interest on the Stonehaven Interest Select is paid monthly by direct debit. This is often done by the customer, but can be funded via the children or potential inheritors who are looking to keep the amount of debt on the property asset under control.
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The great thing about the Stonehaven Interest Select equity release scheme is that the total amount of debt is managed for the duration of the interest only lifetime mortgage, making it a great financial product for those looking for interest only mortgages that don’t continue to eat into the ownership of the asset.
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Due to this controlled nature, the Stonehaven Interest Select mortgages are fixed interest rate lifetime mortgages, the security of which many find appealing.
Stonehaven also provides a no negative equity guarantee, so even if the financial crisis worsens; there is no risk that a burden of debt will be passed on in the inheritance. These are two features which should be discussion points on any kind of interest only lifetime mortgages, as they provide important security and peace of mind.
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Many people struggling to make ends meet during this financial crisis will be looking for ways to finance their retirement in a controlled fashion. Extra capital can really help to ensure that retirement is financially secure. At the same time, those looking for equity release schemes might be looking for control over how much value is traded for this additional security. Their research journey could start with the roll-up lifetime mortgage option, unaware that they are still eligible for an interest only mortgage even into retirement. Therefore, do not fall into the trap that some equity release brokerages will not advise this type of scheme is available. They may receive higher commission levels than payable by other companies, & this should not sway their advice.
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Thats why approaching Equity Release Supermarket you will always receive comprehensive equity release advice; impartial & quality recommednations from experienced industry advisers.
They will discuss all your equity release options available, and endeavouring to find the right equity release solution for you. However, if your priority is to control the amount of equity that is being released from your main asset, then the Stonehaven Interest Select plan is THE innovative option to consider.
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For further details on Stonehaven equity release plans please call Mark on freephone 0800 678 5159 or email mark@equityreleasesupermarket.co.uk.
Tags: equity release, Equity Release Adviser, Equity Release Supermarket, halifax equity release, Halifax Retirement Home Plan, interest only lifetime mortgage, interest only mortgage, lifetime mortgage schemes, lifetime mortgages, No negative equity guarantee, Stonehaven, Stonehaven equity release, Stonehaven interest select
Posted in Interest Only Lifetime Mortgage, Stonehaven Interest Select | No Comments »
Saturday, November 12th, 2011
Following hot on the heels of Equity Release Supermarket’s recently advertised Aviva cashback/valuation/interest rate deal, Director Mark Gregory is pleased to report a further exclusive equity release offer from Just Retirement.
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‘We are pleased to advise that we now can provide a much improved offering to our customers from Just Retirement. On the back of a successful year in the equity release market, our achievements have now been recognised & rewarded by Just Retirement.’
Similar in nature to the Aviva deal, Just Retirement are to offer Equity Release Supermarket customers an amazing £700 cashback, FREE unlimited valuation & specially reduced interest rate of 6.35%.
The £700 cashback coupled with free unlimited valuation will enable our customers to submit an equity release application with NO upfront fees.
Major beneficiaries of the free valuation will be the applicants with higher property values, who will benefit from a completely FREE valuation. An example of this can be seen on a property valuation of £500,000 which will save such Equity Release Supermarket customers a sizeable further£500!’
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The combination of free valuation & cashback (which offsets the application fee) results in the only fixed set up cost to be the equity release legal fees. These can be offered to Equity Release Supermarket customers for as low as £349+VAT & disbursements.
Just Retirement are one of the leading equity release companies whose drawdown scheme has recently undergone a major review, the results of which are now becoming evident.
The Just Retirement drawdown facility, which used to be capped at 100% of the initial release, has now been revised for the first time since its inception over 5 years ago.
The review has resulted in Just Retirement’s drawdown facility being increased from 100% to 200% of the initial withdrawal. This now puts it in line with fellow equity release lenders such as LV= which uses the same formula for calculation of the size of the additional reserve facility.
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To request a quote on the special offer from Just Retirement please click here.
To find your local Equity Release Supermarket adviser please click here or call freephone 0800 678 5159.
Tags: cashback deal, drawdown equity release, equity release, Equity Release Adviser, Equity release interest rates, equity release schemes, Equity Release Supermarket, exclusive interest rate, free valuation, Just Retirement special offer
Posted in Equity Release, News | No Comments »
Tuesday, October 18th, 2011
An increase in the standard of living & more recently inflation levels has caused a shortfall in pension provision. This is now affecting all those people who are on the verge of, or now in retirement. So for those retirees who are on fixed incomes, how can they allay their fears of personal budget shortfalls?
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Well consider equity release schemes as an effective solution to this problem. If you are looking for some more information, this guide will help you understand the lifetime mortgage schemes available.
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What is an equity release scheme?
Equity release schemes allow you to release equity tied up within your home. These schemes are very popular amongst individuals who are entering, or now into the retirement phase of life. Thus, retirees can therefore overcome any shortfall in their income by utilising the tied up tax free cash within the value of their home. Equity release schemes provide pensioners with a steady flow of income thereby helping them to maintain and improve their quality of life. Additionally, in recognition of the demand for irregular tax free cash, drawdown equity release schemes can now provide flexibility.
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Equity release is used to cover financial products that release home equity. However, they need not require any monthly payments & therefore do not affect retirement budget. It is very important to keep in mind that equity release schemes can only be considered for people who are above 55 years of age. For home reversion schemes this minimum age is increased to age 65 in lieu of the manner these schemes operate.
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Lifetime mortgage plans are becoming increasingly popular amongst retired individuals. They provide a lump sum amount based on a combination of the age of the youngest homeowner & the property value.
The younger this age is, the lower the loan-to-value.
In contrast for those more elderly can release a percentage of the property upto 54%.
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A few other benefits of SHIP (Safe Home Income Plans) equity release schemes are:
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- Improved standard of living
- Portable mortgage to another property
- A fixed rate of interest for life
- No monthly payment or instalments required
- No negative equity guarantee
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Equity release is an ideal option when it comes to securing your future. If you find the process confusing, it is highly important to consult an equity release advisor such as Equity Release Supermarket. With access to market leading deals & special interest rates they can research the whole of the equity release market to find the best equity release deal available.
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If you require advice on which equity release is suitable for you, contact the Equity Release Supermarket team on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
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Tags: drawdown equity release, equity release, Equity Release Adviser, equity release schemes, Equity Release Supermarket, home reversion schemes, No negative equity guarantee, Roll up lifetime mortgage, SHIP
Posted in Equity Release, Interest Only Lifetime Mortgage | No Comments »
Monday, October 10th, 2011
People think that going directly to equity release companies rather than going through an independent equity release adviser will save time and money. This is not really true.
There are intermediaries such as Equity Release Supermarket who can research the whole of the equity release market which in itself includes over ten equity release providers. Each company themselves may then have several different equity release products which opens a plethora of options for the proposed buyer.
So how can approaching one individual company therefore provide the customer with the best advice? Obviously not.
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So should equity release intermediaries be your only option?
Direct companies offering equity release schemes are now few & far between. Most equity release lenders realise the importance of providing quality advice & ensuring the consumer receives best advice. Again companies like Equity Release Supermarket will receive more favourable equity release deals than if the customer went directly to any lender.
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If we take Aviva for example.
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Their direct sales force has been drastically cut for its halcyon days from over 10 years ago when competition was not so fierce as only a few lenders offered equity release plans. Marketing costs & the funding of a direct sales force comes with a huge financial burden. Company cars, pension schemes & basic salaries plus bonuses all need to be paid for & by whom…the customer.
Compare this to a company such as Equity Release Supermarket. Aviva do not incur any marketing costs for them, no salaried sales force with company cars, so the savings can be allocated elsewhere for such intermediaries.
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This is shown in the product offering & the competitiveness of the interest rate & deals Equity Release Supermarket receive from Aviva, which can then be passed onto the consumer. Currently there is over 0.5% disparity between the Aviva drawdown scheme sold via Equity Release Supermarket & that sold by Aviva direct. Equity Release Supermarket can offer a special interest rate of just 6.32% & they can also currently offer a free valuation on properties upto £250,000.
The only extra fee involved with an equity release intermediary firm will be the advice fee they charge. However, this would seem a fair price to pay for knowing you have the best Aviva equity release deal in the market. This could be possibly saving £270 on the valuation fee & depending on the size of the release applied for could amount to many £1000′s in interest by having a much lower interest rate!
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Criteria to be an equity release advisor
A lot of equity release scheme providers get their message through to the public via the media; however this alone does not explain all the terms and the details in depth. To understand each and every aspect of a certain scheme one has to have a good knowledge and an in-depth expertise of the terms used in the market as a whole. If equity release is not for you, your independent advisor will should tell you so. They will also consider any financial alternatives such as downsizing, using savings etc before arriving at an equity release recommendation.
Professional independent equity release advisors must have the appropriate licences in order to carry out any business. They must comply with all the rules and regulations of the Financial Services Act & deal with equity release schemes that are members of SHIP.
Therefore, always do your research & find an independent financial adviser who is local to you & who will take the time to understand your requirements & find the best equity release UK scheme for you.
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If you require independent equity release advice with a no obligation appointment, please call the Equity Release Supermarket team on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk.
Tags: Aviva, Aviva drawdown equity release, equity release, Equity Release Adviser, equity release schemes, equity release UK, independent financial adviser
Posted in Equity Release | No Comments »
Wednesday, June 22nd, 2011
The amount of equity you own is the term used to describe the value of a home less any mortgage or secured pending on it. Equity release allows you to free up this money tied up within your home.
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The equity release process will allow you to receive a tax free, lump sum of capital allowing you to spend it in whatever way that you choose.
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An obvious disadvantage is that you will not be able to hand down all of your property to your offspring. Nevertheless, you do get to live out the remainder of your life in your home, rent free or till you move into elderly care.
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If you are considering an equity release scheme, the best way to get started would be to approach an expert. Some organisations which provide equity release schemes also provide a free consultation, so remember to take advantage of their services. Some research of the advisor would be of benefit as they must be regulated by the FSA (Financial Services Authority) & have an individual registration number with them. The equity release adviser should therefore be found on the FSA website register.
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Ensure they are independent, which means they are free to deal with ANY equity release provider in the market. So ask. Some companies purport to be whole of market, however upon closer analysis they only deal with a handful of companies. You may therefore be missing out on a beneficial feature of an equity release scheme that they do not have available. This could save you £1000′s in the long run & could prove costly if the wrong equity release plan was chosen.
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Your advisor will let you in on all the vital details regarding the procedure. This will be after the equity release adviser has collated all the necessary facts regarding one’s current situation. Guarded with this information, & any soft facts provided such as ‘how important is that you leave part or all of your property to your beneficiaries?’ will be asked. Also income & whether you are in receipt of means tested benefits is important as this will reflect on which equity release schemes are advised upon. The equity release consultant can then document & record this stage of the lifetime mortgage process.
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Once an accurate financial picture has been ascertained & observed the clients objectives, the equity release adviser can then discuss the mortgage options available. These would include an explanation of the various schemes available to suit. Included in this would be roll-up equity release schemes, home reversion plans & interest only lifetime mortgages such as the Halifax Retirement Home Plan or the Stonehaven Interest Select.
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You do not have to give them an instant decision; after all, going for an equity release scheme is a big decision and something which should not be rushed into.
Upon presentation of the equity release advisers recommendations a Key Facts Illustration must be offered to you. This would include a summary of the scheme in principle, costs & charges, future balance & the commission payable by the lifetime mortgage providers. This is quite a comprehensive overview of the scheme & covers the finer details, as well as the main features, such as the no negative equity guarantee & early repayment charges etc.
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Once you have made your decision, all you have to do is simply call your advisor and give them the go ahead. They will have all your paperwork taken care of, contact your solicitor and keep you updated about everything, right to the time that you get your money released.
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A professional & courteous adviser will confirm the funds have been released & offer any after care service in the future; for example when additional funds are required such as on a drawdown equity release scheme.
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As a company Equity Release Supermarket keep contact with its clients to advise on new products & interest rates in the future as it is important to keep abreast of the market as & when more competitive products become available.
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Independent & award winning equity release specialist Equity Release Supermarket offer all the above benefits & quality of service that the testimonials at the bottom of the home page illustrate.
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To discuss your options in the release of equity from your property call freephone 0800 678 5159 today or alternatively complete our contact form & one of our advisers will be in touch
Tags: drawdown equity release, equity release, Equity Release Adviser, equity release schemes, equity release solicitor, home reversion, independent, Independent equity release advice, interest only mortgage, lifetime mortgages, No negative equity guarantee
Posted in Advice, Equity Release, Halifax Retirement Home Plan | No Comments »
Friday, June 17th, 2011
Equity release is used as a term for schemes that help a homeowner to secure a good amount of money from their main residence. These schemes provide homeowners with an option to use their property to release money. It becomes hard for people who retire after a certain age and do not have funds to support their needs. Equity release schemes provide an option for people who live on pensions and are unable to support themselves or maybe wish to increase their lifestyle options with a new car or holidays. It therefore helps provide an extra flow of money to fulfil their needs & retirement enjoyment.
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Equity release has become very popular among citizens who are over the age of 55. There are an increasing number of retirees opting for these equity release solutions. Equity release UK schemes offer retirees an opportunity to generate money from their property, either a lump sum amount, timely earnings, or in some cases, both. Retirees can remain living on their property unless they decide to move out at which point the equity release plan becomes repayable. The equity release providers will usually require repayment of the balance within 12-18 months by the beneficiaries. This gives the executors of the estate plenty of time to achieve the best sale price on the property to cover the debt & maximise the inheritance for the beneficiaries.
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The value of your property and your age are the key factors in the data used in equity release calculator formula. There is no age limit as far as equity release is concerned. The older you are, the more you can generate out of your property. This scheme is accessible for people who are over fifty five years and own their property which usually should be of standard construction & freehold, or leasehold with more than 75 years left remaining on the lease.
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Halifax Retirement Home Plan is one such scheme which helps people to extract money out their property. It is a type of interest only equity release lifetime mortgage plan where the borrower pays a sum of money to the lender on a monthly basis. It is a useful and easy plan which suits the needs of all perfectly. As mortgages for pensioners seem to be difficult to come by, the Halifax equity release scheme has become a breath of fresh air to many people in retirement. They can be safe in the knowledge that the balance will not increase as long as the payments of monthly interest are maintained.
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This is an interest only lifetime mortgage which means there is no set term & these equity release schemes will run for the rest of their lives. As long as too much equity is not taken from inception on the Halifax Retirement Home Plan then if there comes apoint in the future that the monthly payment should cease, then repayment by a roll-up equity release plan could always take effect.
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There are many options today that assist pensioners to take equity release from their property, however to ensure which scheme is the correct one for your circumstances contact a professional & qualifies advisory service.
Award winning Equity Release Supermarket have advisors local to you who can provide quality & friendly service to guide you through the equity release decision making process.
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Call the equity release team today on 0800 678 5159 for your free initial consultation.
Tags: equity release, Equity Release Adviser, Equity release calculator, equity release schemes, Equity Release Supermarket, halifax equity release, Halifax Retirement Home Plan, lifetime mortgage schemes, lifetime mortgages, pensioner mortgage, Roll up lifetime mortgage
Posted in Equity Release, Halifax Retirement Home Plan | No Comments »
Tuesday, April 19th, 2011
Upon researching whether equity release is a suitable option, you may be finding most of the information available in the press or on the internet focuses on the main types of plans available which are Roll-Up Lifetime Mortgages.
There is in fact another type of plan which is less commonly understood and these are called Home Reversion plans.
I think it’s important to consider these plans in more depth. Increasingly home reversions are become more appropriate for those considering taking an equity release plan, particularly if those looking for a simple plan giving a high degree of certainty.
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A home reversion plan involves transferring ownership of all or part of your property to the provider in exchange for a tax free cash lump sum (or you can choose regular payments). Your property is independently valued and from this the provider will work out how much they will pay you for the percentage of the property being sold.
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The amount you’re paid wont be as much as the market value of the property. This is simply because you will be living there rent free for the rest of your life (or until moving out permanently into long term care). As a “rule of thumb” the older you are the more the home reversion provider will pay you for the share sold, that’s because your life expectancy is less. You are still responsible for paying all your bills, insurance and maintaining the property. At the end of the plan the property is sold and if you’ve retained part of it, your share of the proceeds will be paid to your estate.
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When considering a home reversion company, it’s important to choose a provider who is a member of the trade body Safe Home Income Plans. SHIP members offer a guarantee to their customers, the main benefits of this are that you’re allowed to remain in your property for life (provided the property remains your main residence) and you have the right to move plan to another suitable property without any financial penalty. Plus of course you have the safeguard of independent legal advice.
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Home reversions are also regulated by the Financial Services Authority (FSA) which oversees how providers and advisers must deal with you. And finally, because home reversions involve the sale of property a third level of extra consumer protection is given by UK property law, which governs the relationship with the provider and their obligations towards you.
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So what type of people are home reversion schemes most suitable for?
Well it really boils down to your thoughts and concerns. As a guide a reversion might be more appropriate for someone who falls into some or all of the following categories:
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- Customers who want to specifically avoid debt – a home reversion plan is not a mortgage & cannot therefore be repossessed
- Those concerned house prices won’t keep going up – the risk of falling house prices is passed to the provider
- People in good heath and confident that they may live for many more years to come (for example there may be a history of longevity in the family) – generally the longer you live the better value a reversion becomes
- Anyone wanting to the peace of mind of knowing that if they need to in the future, they can access the maximum cash from their remaining equity – some providers will guarantee to always release further funds until 100% of the property is sold
- Clients wanting to guarantee an inheritance for their estate – for example if only 25% of the property is sold, the estate will inherit 75% of its value after costs
- Those wanting to release more cash from their property than they can by using a lifetime mortgage
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Naturally home reversion plans are not for everyone. Generally you will only be eligible to take a reversion plan if you are 65 or older. Ideally, to get the better rates you would need to be over age 70.
As reversions are a long term commitment they should not be considered if you intend to repay the money released at some stage in the future (for example if you’re expecting an inheritance).
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If you are in poor health or expect to have below average life expectancy then you may not get full value from a reversion either. However, we do have access to products now that do offer an impaired life (poor health) facility & therefore can provide an extra lump sum for this reason.
For those unfamiliar with how a reversion works there is understandably a little concern about giving up all or part ownership of your property.
The reality is that the terms and conditions of a reversion (ie the “small print”) are similar to that of equity release and your right to privacy and freedom to live in your own home are not affected.
Usually with a home reversion you are granted a lease for life to live in the property for as long as you wish to. And this important legal arrangement is recorded by HM Land Registry much the same as a leasehold flat or house is. So although you may have sold all or part of the property to the provider it still very much remains your home.
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The decision to release equity from your home using a home reversion plan or a lifetime mortgage is an important one and you will need specialist advice from a Financial Adviser in order to do so. They can talk to you about whether equity release is right for you and if it is what sort of product best suits your particular needs.
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To obtain further information on Home Reversion schemes, please contact an Equity Release Supermarket adviser on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, Equity Release Adviser, FSA, home reversion, home reversion plans, home reversion schemes, impaired life, inheritance protection, lifetime lease, lifetime mortgages, lifetime tenancy, SHIP
Posted in Advice, Equity Release | No Comments »
Tuesday, March 8th, 2011
On Thursday 3rd March 2011, the equity release market saw another welcome lender return with Stonehaven relaunching their Lump Sum & Interest Select plans.
Having been absent for over a year whilst new funders were sourced, Stonehaven have now streamlined & simplified their product range.
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One product in particular will answer a common question –
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“Can I have an interest only equity release plan where I can repay the interest?”
Well the answer is now categorically – ‘YES’
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Before discussing the Stonehaven Interest Select option in greater detail, let’s have a look at the two products launched.
Stonehaven now have two propositions available to customers: -
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1. Lump Sum Only Option
2. Interest Only Equity Release
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The lump sum option does as it says on the tin; namely two lump sum options which offer different loan to values. Stonehaven are not launching at the maximum release end of the market, but aiming competitively with lower interest rates.
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Lump Sum Lite has the lowest interest rate at market leading 6.13%.
Plans start at 55 & this product will release 11% of the property value at this age.
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The Lump Sum plan has a higher interest rate of 6.24%, with a higher release of 14% at age 55.
Both plans have no drawdown facility, but a simplified single lump sum option from the outset.
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Next we come to the Interest Select products.
These innovative plans allow you to choose how much of the interest charged you would like to repay each month, and also how long you wish to pay this for. You could pay off the whole interest, or if you have a specific budget just pay off part of the interest with the remainder rolling up onto the original capital borrowed.
In effect it can be classed as an interest only lifetime mortgage for pensioners.
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Traditional equity release may not be suitable for everyone, especially due to roll-up of interest & the reduction this will make to potential beneficiaries.
Therefore, particularly suitable for people with good disposable incomes & used to servicing & managing debt throughout their working lives, these people can now control how much inheritance they leave behind by these new equity release schemes.
Primarily, it can be regarded as a half way house between a conventional mortgages and roll-up equity release. The scheme is an interest only eqity release & has all SHIP safeguards and protection offered by the FSA.
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However, a major feature of the Interest Select plan is the ability to be converted over to a full roll up scheme at a later date. This could be when one party to the mortgage dies or financial circumstances dictate that no more monthly payments wish to be made.
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Simplification on the new Interest Select means that when conversion arises, the new rate on the equity release plan will only be 0.2% higher than on the previous Interest Select. However, better still, should the roll-over date be previously set, then roll-over will be at the SAME interest rate as the original interest only element.
With interest rates starting at 6.13% which are currently the lowest in the market, a particularly attractive proposition can be found here for those interest rate tarts!
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TIP – Should one be able to afford the minimum monthly contribution of £25pm for the minimum roll-over period of 12 months, then one can easily achieve a roll-up equity release plan with a 6.13% monthly interest rate thereafter!
Surely, a tip not to be passed by?
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There have been four Interest Select plans launched which surely indicates which way Stonehaven feels the market potential lies.
These range from the Interest Select Lite at just 6.13% & releasing 11% at age 55, upto Interest Select Max with an interest rate of 7.57%, but releasing a higher 19% at age 55.
An example of borrowing £40,000 on the Stonehaven Interest Select Lite at 6.13% would result in monthly payments of £205pm.
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Qualification Criteria for Both Schemes
All Stonehaven equity release products are available to people aged 55 and over, living in a main residence in England and Wales & must have a minimum property valuation of £70,000. The minimum release has been reduced to £10,000.
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Additional Features
No Negative Equity guarantee
There is the guarantee that when the property is sold on death or long term care, the proceeds payable to Stonehaven can never be greater than the property value itself. This guarantees there can be no excess debt passed to the beneficiaries.
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Protected Equity
A valuable inheritance protection feature applicable to the lump sum plans. There is the facility to choose to protect a percentage of the final sale value of the property. Point to note is that the no negative equity guarantee and the amount that Stonehaven will lend are based on the value of the unprotected portion of the property.
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Thus, another chapter unfolds in the equity release storyline; providing greater diversity in the whole of market lifetime mortgage product range. A welcome read & a promising sign of further things to come for the industry.
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If you have any questions, or wish to obtain advice on the Stonehaven range of products please contact the Equity Release Supermarket team on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
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Tags: equity release, Equity Release Adviser, equity release schemes, Halifax Retirement Home Plan, inheritance protection, interest only mortgage, lifetime mortgage schemes, lifetime mortgages, SHIP, Stonehaven, Stonehaven interest select
Posted in Equity Release, News | No Comments »
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