Posts Tagged ‘Halifax Retirement Home Plan’
Wednesday, March 27th, 2013
Equity release schemes have risen in the popularity stakes over the past 12 months. With regular articles in the tabloids, and increasing government awareness, lifetime mortgages have certainly raised the bar. But how does equity release actually work in the whole scheme of things, and why has it become such topical subject matter for those looking for a comfortable lifestyle in retirement?
Equity release workings
Primarily equity release is available to home owners where the youngest person on the deeds is at least aged 55. Equity release works by allowing eligible people to raise tax free cash from the equity tied up in their home. The amount that can be released is based on an age-related ascending percentage of the value of the home. In other words, the older you are, the more you can raise!
For example a single person in good health, aged 65, with a property value of £250,000 could raise a maximum of 30% of the property value. This would mean a maximum equity release of upto £75,000 with Aviva.
Even better, is the fact there are now impaired life schemes that offer ‘enhanced’ rates to people who are not as fit and healthy as they used to be and these schemes increase the percentage that can be drawn.
Therefore, if the same person was a smoker with high blood pressure, having diabetes & a history of heart attacks could now release upto £115,500 on the Partnership enhanced lifetime mortgage scheme.
Popular uses for equity release
The money raised from any equity release scheme can be used for any legal purpose from clearing credit card balances and existing mortgages, to helping children or grandchildren with deposits to climb onto the property ladder. However, many would be treating themselves to some lifestyle indulgences such as a new car, world cruise or home improvements.
Today’s equity release schemes
The modern format of Equity Release started in the mid 1990s with Hodge Lifetime (part of Julian Hodge Bank), Norwich Union (now Aviva) & Northern Rock (now Papilio UK) with a simple roll up lifetime mortgage.
Today there are three basic equity release schemes:-
1) Roll up Lifetime Mortgage
This type of scheme has a few variations but basically the borrower takes an initial tax free lump sum, makes no monthly payments and the accrued interest is added to the loan and compounds annually.
The main variation to this is the “drawdown lifetime mortgage“ scheme. This is where only the immediately required amount is drawn down and a reserve cash facility is then offered with the remainder. No interest is accrued on this drawdown facility until it is taken in the future. The advantage here by taking it in smaller amounts is that interest is compounded at a much slower rate, than if it had be taken all at once.
Another variation of a roll up plan is offered through Hodge Lifetime on a roll-up basis. Hodge’s flexible repayment plan has an option to repay up to 10% of the original amount borrowed annually without any early repayment charges. Hodge also offer a unique ‘downsizing protection’ option whereby after five years, if the property is then sold and the owner moves & downsizes house, then no early repayment charges apply. A great solution for many who cannot sell now, but may do so in the future.
2) Interest Only Lifetime Mortgage Plans
There are two lenders currently offering this type of interest only scheme – Stonehaven and more2Life. Both schemes are fairly simple whereby a lump sum is withdrawn and the monthly interest is paid in order to maintain the balance outstanding level throughout the term.
This method has proved appealing to parents who are keen to minimise any inheritance reduction for their children. In recent times, since the withdrawal of the Halifax Retirement Home Plan lifetime interest only mortgages have become increasingly popular. Both these Equity Release Interest Only schemes have the added safety feature that should the monthly payments become too much (one applicant dying and their pension income reducing) then it can revert to a roll up equity release plan, where no payments are required thereafter.
3) The Home Reversion Plan
This is now the least popular type of equity release mortgage. Nevertheless, it can prove to be the best advice in certain scenarios. The workings are that the homeowner(s) must have a minimum age of 65. They have the option of selling part, or all of their property to the reversion provider and then lives in that property, usually rent free, for the rest of their life. In truth, this is usually only appropriate when there are no beneficiaries to the estate, or they wish to leave a guaranteed percentage of the final value of the house to their children.
Home reversion schemes only account for less than 5% of the market these days. The market has seen a few withdrawals from the market by lenders such as Aviva and Retirement Plus. The three remaining home reversion providers are Hodge Lifetime, New Life & Bridgewater.
About the author
The author of this article is Barry Adnams, who is a senior equity release adviser at Equity Release Supermarket.
Barry is aware of what a monumental decision taking equity release can be. He is a traditional adviser that would always advocate a home meeting with family involvement. Barry offers an initial cost free ‘face to face’ appointment and likes to include as many family members as possible to be present to discuss whether taking equity release is the right option, or not.
If you want to benefit from the experience Barry has to offer and understand how equity release works further, then please contact Barry Adnams at Equity Release Supermarket, on 07989 281108 for a free initial consultation. Alternatively please email barry@equityreleasesupermarket.co.uk.
Tags: Barry Adnams, drawdown equity release, drawdown lifetime mortgage, equity release, Equity Release Adviser, equity release mortgage, equity release schemes, Equity Release Supermarket, Halifax Retirement Home Plan, Hodge Lifetime, home reversion, Home reversion plans, Home Reversion schemes, interest only lifetime mortgage, lifetime mortgage, lifetime mortgage schemes, more2life, Retirement Plus, roll-up equity release, roll-up lifetime mortgages, Stonehaven equity release
Posted in Drawdown LifetIme Mortgage, Equity Release, Interest only Lifetime Mortgages, Stonehaven Equity Release | No Comments »
Sunday, January 13th, 2013
A common question that the over 55’s are asking these days is whether equity release schemes are flexible enough to accept repayments of interest and/or capital. With an increasing financially savvy population, particularly those approaching their retirement, this poses an interesting debate.
Typically, equity release plans have been associated with the roll-up lifetime mortgage principle, whereby NO monthly payments are necessary. For many retirees this is a daunting prospect given the fact that with the compounding of interest, the inheritance they would leave behind could be severely reduced, if not eliminated.
Equity release innovation needed
Equity release providers have therefore been posed themselves the question about how to develop this sector that has historically been devoured of innovation. This lends us back to the original scenario regarding the switched nature of the over 55’s, and how they are now demanding more equity release plans to meet their changing needs.
The baby boomer age group has historically grown up on a life of credit lines such as their residential mortgage, personal loans, hire purchase and credit/store cards. For them, the continuation of a mortgage in retirement is not a serious concern providing adequate pension income is received to fulfil their monthly commitments.
Some of these people will have ended up with a mortgage leading into retirement potentially affected by endowment shortfalls or pension fund under performance. Whichever way they have an outstanding mortgage at retirement, there needs to an option available that can address this common problem.
Halifax tried and failed
Certain equity release companies have researched this and taken note, particularly given the popularity that the now defunct Halifax Retirement Home Plan. Until August 2011, this Halifax equity release plan offered the over 60’s a mortgage based interest only scheme that would run for the rest of their lives. The void this product has left since being pulled from the market has been enormous and left an opportunity for another interest only provider to fill.
Equity release mortgages have now come into their own. Where once they were categorised as a vehicle to enhance lifestyle, they have now become an instrument of necessity, for many who wish to address their retirement shortcomings. These lifetime mortgages can, with product development, provide the ideal solution to an interest only mortgage situation that will only become an even greater issue in years to come.
Changes have started
Today the equity release market has opened up and a variety of new plans are now available. 2012 has seen new products come to market that are pushing the boundaries of how the equity release concept can be expanded and accommodate more people into the fold.
Therefore, to answer to the question – ‘Do Equity Release Providers Accept Repayments of Interest and/or Capital‘, the answer is categorically ‘YES’.
The next article – ‘Which Equity Release Companies Accept Payments of Interest &/or Capital’ will discuss the three current equity release providers that will accept repayment of interest and/or capital. Here we can look in greater depth at them: -
Hodge Lifetime – Lump Sum Lifetime Mortgage & the Flexible Lifetime Mortgage
Stonehaven – Interest Select Plans – Including Interest Select Lite, Plus, Select & Max
more2life – Interest Choice Plan
To discuss these products further call the team on 0800 678 5159 or click here to read the next article on this subject.
Tags: equity release, equity release plan, equity release plans, equity release schemes, halifax equity release, Halifax Retirement Home Plan, Hodge Lifetime, interest only lifetime mortgage, interest only mortgage, lifetime mortgage, lifetime mortgage schemes, more2life, roll-up lifetime mortgages, Stonehaven
Posted in Equity Release, Halifax Retirement Home Plan, Interest only Lifetime Mortgages, Interest Only Mortgage, Retirement Mortgage, Stonehaven Equity Release | No Comments »
Monday, November 12th, 2012
Retirement mortgages are becoming a rare breed. Nevertheless, with good research provided by an experienced equity release adviser, there are still such products available for the over 55’s. Products such as the Stonehaven Interest Select Plan are a good alternative to the now withdrawn Halifax Retirement Home Plan mortgage. If you have a pre-existing mortgage when you reach retirement age, there are certainly some options that are still available for you to consider.
Firstly, it is important to consider the changes in your income when you reach retirement. If your income during retirement still allows you to sustain the pre existing mortgage then the mortgage can be continued for a period. This will however be determined by the term of your existing mortgage and the attitude of your mortgagee. We have recently seen that since the FSA report into interest only mortgages, that residential mortgage lenders have revised their terms and attitude towards this sector of the mortgage market.
The repayment vehicle is where the issue has fallen down. Many people have taken interest only mortgages and for one reason or another never taken out the repayment vehicle that was meant to have provided the funds to repay the mortgage with at the end of the term. This has left a time bomb waiting to go off due to the sheer numbers of people with interest only mortgages now hitting their retirement years.
Affordability going into retirement is the one aspect of retirement planning most people do not look ahead for. Their income will fall as full time employment will usually cease and pensions as we all know have not performed as the quotes originally showed when personal pensions were originally take out.
Therefore, upon attaining retirement age, if you are unable to afford the mortgage, it is necessary to take the correct steps to remedy the situation. Your existing lender should allow you to switch to another interest only mortgage provider, should one be suitable to meet your requirements. To be able to do this, the loan-to-value ratio will be key as to what options will be available upon remortgaging outstanding. Now that the Halifax Retirement Home Plan mortgage has been taken out of service, what options actually remain to switch to?
By considering switching to an interest only lifetime mortgage can allow you to make monthly interest payments; the balance remains the same, which is repaid once the property is sold. The question to ask yourself is whether you require the mortgage to run for the rest of your life or to tie in with future plans, such as downsizing, or you only want the mortgage to run for a fixed number of years. Remember, selling your property and moving to a smaller property and paying off the balance is an option worth considering. The answer to these questions will determine the correct retirement solutions for you.
Equity Release Supermarket currently has two interest only lifetime mortgage plans available. Therefore, if your current lender does not provide this option, and you wish to remortgage then find an equity release adviser who can provide details. We can advise on both the Stonehaven range of interest select plans, or the recently launched more2life Interest Choice plan on 1st November 2012.
However, always look at the options before pledging your future to an interest only lifetime mortgage product. You could be entitled to retirement benefits that can help you cope with the existing mortgage. For instance you could be entitled to council tax benefit or pension credit which could have an impact on your income & mortgage affordability. Certain organisations such as Shelter can provide mortgage interest advice and support to those who are eligible. It is worth exploring these options that can help with making payments.
There may be other residential mortgages that you can consider switching to. However, these companies such as Leeds Building Society may only provide a temporary reprieve due to the limited term permitted. Most lenders will usually want full & final repayment by a maximum age of 70-75.
It is therefore important to seek professional advice in order to make a well informed and well researched choice. Switching to an interest only lifetime mortgage such as the Stonehaven Interest Select Lite is one such option, wherein you make monthly interest payments for life and the balance on your mortgage remains the same. With Stonehaven interest rates now only starting from 5.99% monthly and thereafter fixed for the whole duration, for those that qualify this is an excellent & secure option available to people over age 55.
If you wish to cease making any payments towards the mortgage, maybe as you have no children or close relatives, then roll-up equity release schemes may also be a good option for you. A roll up equity release is where no monthly payments are required as instead the interest gets added to the balance. The equity release deals from some roll-up companies are excellent at the moment with the incentives to help with set up costs. For instance, the Aviva Flexible lifetime mortgage starts with rates as low as 5.57%, depending on personal requirements and this is coupled with free valuations and three cashback options.
However, if the thought of your inheritance disappearing before your eyes when you receive your annual roll-up lifetime mortgage statement arrives then its worth looking at companies like Stonehaven and more2life. You should know that interest rates are currently the lowest ever for Stonehaven in their six year history. From the number of interest only enquiries we now have, many people have also noticed and taken advantage of tying themselves into today’s lowest interest rates and fixing them & their futures up for the rest of their lives.
To discuss your equity release options at retirement call the equity Release Supermarket team on 0800 678 5159 today.
Tags: Aviva, equity release, Equity Release Adviser, Equity release interest rates, equity release schemes, Equity Release Supermarket, FSA, fsa report into interest only mortgages, Halifax Retirement Home Plan, interest only lifetime mortgage, lifetime mortgage, more2life, redeem mortgage, repayment vehicle, retirement mortgages, Stonehaven, Stonehaven equity release, Stonehaven interest select
Posted in Interest only Lifetime Mortgages, Retirement Mortgage, Stonehaven Equity Release | No Comments »
Wednesday, October 10th, 2012
The tabloids are currently awash with articles proclaiming the death knell for the interest only mortgage. We only heard a few days ago the Nationwide are just one of the high street mortgage lenders in declaring themselves out of the interest only mortgage market.
But are these lenders missing a trick?
There is a potentially huge retirement mortgage market out there; a society that has grown up on a life of managing debt. They have paid off their mortgage, loans and credit cards during their lives which has created a culture of good financial management and has enabled them to build a significant volume of equity in their property.
Lenders need to understand more about the needs and demands of our retired population: -
- Pensioners have fixed incomes which will usually be incremented each year
- Most have a good credit history with track record to prove this
- The older population tend to manage credit better & have not harnessed the ‘buy now, pay later’ mentality of today’s younger generation
- They cannot be made redundant, nor lose income due to sickness or injury
We know in business, where one dares to tread another will be quick to follow and New Life Mortgages have done just that with their newly launched Over 65’s Retirement Mortgage.
Who are New Life Mortgages?
New Life Mortgages have been offering equity release schemes since 2003 and their innovative ideas were behind the first ever buy-to-let equity release plan and 2nd home lifetime mortgage schemes.
Having been assessing the market for their latest launch, New Life has evidenced the potential behind the vacuum left by the withdrawal of products such as the Halifax Retirement Home Plan in 2011.
The 65+ Retirement Mortgage
The newlife mortgages 65+ mortgage is aimed at homeowners with a minimum age of 65 who are looking to raise a tax free lump sum secured against their property and who wish to remain in situ for the foreseeable future. The important aspect of this plan is the term – there is no upper age limit and the applicants can take it out over a 25 year term, possibly longer with lender approval.
Available on an interest only or capital & repayment basis, the 65+ mortgage has an interest rate of 5.74% variable. Therefore, applying for a £50,000 mortgage on interest only basis would cost £239pm.
Early repayment charges (ERC’s) are favourable also which isn’t the norm on most equity release or interest only lifetime mortgage schemes. With a penalty of 3% in the first year only and none thereafter, the 65+ mortgage could certainly could suit those who are unable to sell their properties in the short term but still need cash funds.
How much will New Life Lend?
Standard mortgage lending criteria applies and affordability needs to be evidenced to determine how much can be borrowed. A common sense approach, and & possibly one that most lenders in the current environment could benefit from.
The formula for calculating maximum borrowings are based on income of 4x the first income plus 2.5x the second, or simply 3.75x joint income, whichever provides the highest release for the client. Even still the loan must prove affordable when viewed in conjunction with other household expenditures. Usual credit checks are made and references requested if necessary.
The overall maximum amount that New Life Mortgages will lend is £350,000, although again this can be reviewed subject to individual criteria. One caveat though is that the maximum amount that can be borrowed is 50% of the property value & there must be £150,000 equity remaining after the mortgage is granted. Therefore, the over 65’s mortgage may not fit all criteria; however it is hopefully a move in the right direction for pensioner mortgages.
Finally
The 65+ mortgage is available on a purchase or remortgage basis. If remortgaging then New Life Mortgages are currently offering a FREE legal fees package on every application.
If you wish to check eligibility or request a quote on the New Life Mortgages 65+ Mortgage please call the Equity Release Supermarket team on 0800 678 5159.
Tags: 65+ Mortgage, Halifax Retirement Home Plan, interest only mortgage, interest rate, New Life Mortgages, Over 65s mortgage, pensioner mortgage, remortgage, repayment mortgage, retirement mortgage
Posted in Interest Only Mortgage, Latest News, Retirement Mortgage | No Comments »
Friday, April 20th, 2012
News today in the equity release sector, is that Stonehaven’s range of equity release schemes are now available in mainland Scotland.
Stonehaven have been providing equity release mortgages in England and Wales since August 2006. However, due to strong demand for its range of interest only lifetime mortgages entitled ‘Interest Select’ plans, they have now incorporated the Scottish legal process into their equity release application. Therefore, with previous limited availability in Scotland for interest only lifetime mortgages, this should come as a great relief for many over 55′s in Scotland needing financial support for their retirement.
Why Has the Stonehaven Interest Select Plan Become So Popular?
Opinion is split whenever deciding to take a release of equity from a retiree’s property. Gone are the days when a one-off tax free lump sum was the only option. With the increasing flexibility in the market such as the drawdown lifetime mortgage & new enhanced equity release schemes, lenders are looking more towards ‘niche’ equity release plans.
Having captured the interest only mortgage market for the over 55′s, Stonehaven who were originally funded by Santander have come, gone, & are now back with there revised range of Interest Select Options & Lump Sum Plans. With healthy lending for 2012 & with the backing of a large mutual enhanced annuities provider, Stonehaven are now broadening their horizons & diversifying into Scotland.
People over the age of 55 are looking at different means of releasing equity from their property. Not only that, there are different financial attitudes towards their property & ultimate inheritance. This has increased awareness of the impact that roll-up equity release schemes have had on people’s inheritance on schemes previously taken out. Due to the compounding effect of the interest on roll-up schemes, many retirees have turned up their noses to conventional equity release mortgages.
This is where Stonehaven as an equity release company has benefitted. Possibly due somewhat to the demise of the Halifax Retirement Home Plan, Equity Release Supermarket advisers have seen a significant rise in enquiries for an interest only lifetime mortgage. There is a strong demand for an interest only mortgage for the over 55′s, and this signifies the fact that a majority of pensioners still have income to support a retirement mortgage. This age group has many advantages to prospective mortgage lenders, however for reasons discussed later in this article, they are significantly overlooked.
Why have Mortgages for Pensioners been Overlooked?
With a large proportion of equity in their properties, hence low loan-to-values, usually a good credit history & repayment record, the over 55′s are favourable for a mortgage where interest only repayment is only required. The Stonehaven range of Interest Select Plans have given this situation much thought, not only to the positive aspects, but also to the negatives in particular if someone encounters financial difficulties during the term of their plan. They have a specific ‘safety net’ in place that has the option that upon missing 3 monthly payments, or the planholder opts not to make anymore monthly payments, the plan can converted over to a roll-up lifetime mortgage. This removes any concern over incurring a poor credit record & eliminates any risk of repossession.
In addition the Protected Equity guarantee is available whcih can ensure that your beneficiaries receive a percentage of the final sale value of the property. Peace of mind for sure.
The Interest Only Mortgage Ticking ‘Timebomb’
Previous articles have discussed the FSA (Financial Services Authority) crackdown on mortgage lenders offering interest only deals. Correctly, this has made pre-retirement applications for interest only mortgages more stringent & more capital & repayment mortgages are now taken as a result.
However, this sweeping clampdown has also impacted on the post-retirement mortgage market. It seems the old adage ‘tarred with the same brush’ has been applied to the whole demographic mortgage population. It shouldn’t, as a different set of rules & principles apply to mortgages in retirement. Retirement mortgages should be made more available on an interest only or capital & repayment basis. There should be more understanding from the powers that be that the needs of pensioners are significantly different than those pre-retirement.
Retirees do not necessarily need, or want the eventual repayment of capital. Considering the FSA are regulating & accepting the principle of roll-up equity release schemes, then why the reluctance for interest only mortgages in retirement?
Exceptions should be made & this sector of the mortgage market be subject to a further review.
Nevertheless, one company who has received FSA & SHIP (Safe Home Income Plan) approval for its interest only retirement mortgage is Stonehaven. With foresight of circumstances to come & which were conceived over a decade ago, Stonehaven are currently, & will be, reeping the benefits.
Endowment shortfalls are now becoming more evident & with Aviva only expecting 1% of its low cost endowment plans to meet their targets in 2012, then we can see why mortgages into retirement are going to become a common occurrence. In addition for many reasons people are approaching retirement with a mortgage and no form of repayment. With lenders such as Santander, Woolwich, Halifax & Nationwide not extending terms for those reaching the end of their interest only mortgage terms, a solution for their plight needs to be found.
Stonehaven Solutions
Well, this is where Stonehaven see’s how their interest only lifetime mortgage can resolve such issues. Dependent on the size of the mortgage & property valuation, Stonehaven maybe be able to assist. By using the Stonehaven equity release calculator, one can ascertain the maximum amount they could lend & hopefully assist in remortgaging from the previous lender. This would be the ideal situation, but not always the best. Alternatives should be considered such as downsizing, using savings or getting assistance from family & friends, however this may not be in the best interests of the mortgagors & family ties may over rule such as decision.
If Stonehaven can raise sufficient equity on your property to repay the mortgage, it would mean transferring onto a lifetime mortgage product which then eliminates any concerns over repayment in the future. In fact repayment is only required upon 2nd death or moving into long term care. The only obligation during the term is to maintain interest only payments which will remain EXACTLY the same for life due to the lifetime fixed interest rate which currently start from 6.08% (6.40% typical APR).
Therefore, someone borrowing £25,000 on the Stonehaven Interest Select Lite plan would find their monthly payments at just £119.96pm fixed for life!
Next Steps
To discuss your interest only lifetime mortgage options & alternatives as to whether the Stonehaven equity release plans are suitable to meet your requirements, contact your local independent adviser at Equity Release Supermarket by calling freephone 0800 678 5159.
Additionally, visit the Equity Release Supermarket website & read the dedicated Stonehaven Interest Select page detailing the product features & current rates available. Here you can request a Stonehaven quote & gain a greater understanding of all Stonehaven’s schemes.
Tags: drawdown equity release, equity release, Equity Release Adviser, Equity release calculator, equity release schemes, Equity Release Supermarket, FSA, Halifax Retirement Home Plan, interest only lifetime mortgage, interest only mortgage, interest only mortgages in retirement, lifetime mortgage schemes, lifetime mortgages, Roll up lifetime mortgage, SHIP, Stonehaven, Stonehaven equity release, Stonehaven interest select
Posted in Interest only Lifetime Mortgages, Stonehaven Equity Release | No Comments »
Friday, February 10th, 2012
Just as you thought things couldn’t get much better with equity release interest rates, Stonehaven have joined the latest interest rate war by announcing the lowest annual interest rate yet of just 5.89%.
It looks like Aviva & Just Retirement have stirred up a hornets nest within the equity release market.
Stonehaven equity release have stated they will be reducing their lifetime mortgage interest rates across their whole product range with effect from Monday 13th February 2012. With their benchmark gilt rate now falling to just over 2% they have reduced their interest rates accordingly & maybe more reductions to follow?
The greatest reduction has been on their interest only lifetime mortgage product – Interest Select Max which offers the highest loan-to-value. This has been reduced from 7.57% down to 7.10% monthly.
For comparison purposes, on a £50,000 Stonehaven Interest Select Max mortgage, the monthly payments would have reduced from £315pm down to £296pm. A saving of almost £20pm.
However, the greatest reduction is evident the lump sum product range & it seems Stonehaven are now trying to capture more of the lump sum equity release market. Hence their slightly aggressive stance in lowering below Aviva’s 5.92% rate announced only the other day.
Their niche interest only lifetime mortgage has played a major role in assisting people who have been left stranded by the recent withdrawal of the Halifax Retirement Home Plan.Without the Stonehaven interest select mortgage, there would be no other interest only lifetime mortgage lender in England & Wales.
This is due to the fact that Stonehaven only lend in England & Wales, which means that people in Scotland & Northern Ireland still need to source alternative lenders should they be looking for interest only mortgages. Equity Release Supermarket can still assist here but please contact us on 0800 678 5159 for details.
Details of Stonehaven’s new interest rates are as follows: -
Lump Sum Lite 5.89% (was 6.13%)
Lump Sum 5.98%
Their range of interest only lifetime mortgage rates are as follows: -
Interest Select Lite 6.08% (was £6.13%)
Interest Select 6.17%
Interest Select Plus 6.46%
Interest Select Max 7.10%
If any of these new deals are of interest to you, please contact the Equity Release Supermarket team on 0800 678 5159 where an adviser can provide guidance as to which Stonehaven equity release mortgage would be suitable.
Alternatively, you can email on mark@equityreleasesupermarket.co.uk
Further links for Stonehaven are as follows: -
Request a Stonehaven Quote | Stonehaven Factsheet | Stonehaven Deals |
Request Stonehaven Advice
Tags: Aviva, equity release, Equity Release Adviser, Equity release interest rates, equity release schemes, Equity Release Supermarket, Halifax Retirement Home Plan, interest only lifetime mortgage, interest only mortgage, Just Retirement, lifetime mortgage schemes, lifetime mortgages, Stonehaven, Stonehaven equity release, Stonehaven interest select
Posted in Interest only Lifetime Mortgages, Latest News, Stonehaven Equity Release | 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.
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.
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.
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.
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.
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.
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.
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.
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, pensioner mortgages, Stonehaven, Stonehaven equity release, Stonehaven interest select
Posted in Halifax Retirement Home Plan, Interest only Lifetime Mortgages, Stonehaven Equity Release | No Comments »
Tuesday, November 15th, 2011
Since its withdrawal in August 2011, the Halifax Retirement Home Plan has certainly left a void in the post retirement mortgage market. What options remain for pensioner mortgages?
Pensioners, who were proposing to use the Halifax Retirement Home Plan at a future date, unaware of its impending withdrawal, have now had their retirement plans severely disrupted.
Enquiries are still being received from retirees looking for a pensioner mortgage which can be used for a variety of lifestyle solutions.
With options from moving house, to holidays, gifting to children & home improvements, there has been a significant reduction in the interest only mortgage options available.
So why was the Halifax Retirement Home Plan Withdrawn?
Enormous demand for the Halifax Retirement Home Plan apparently consigned the product to its own demise. Success is not usually associated with dramatic failure, but it seems the Halifax Retirement Home Plan was in this case, a victim of its own success.
Given the volume of applications Halifax was receiving, even a lender the size of Halifax was struggling with such popularity. Towards its latter days the Halifax back office systems were choking, solicitors being incorrectly instructed & timescales reaching unacceptable levels, so much so that Halifax have actually compensated clients due to administrative errors.
Reasons for the Halifax Retirement Home Plan’s Popularity
Since the products inception in July 1984, the Retirement Home Plan lay hidden in Halifax’s mortgage book for many years.
However, certain intermediaries specialising in equity release, subsequently understood the product had a role to play in providing best advice & offered an alternative to roll-up equity release schemes.
Not everyone is suited to a lifetime equity release scheme where the interest rolls up & compounds annually for the rest of their lives. Roll-up schemes to some pensioners can prove off extremely off-putting, with the balance approximately doubling every 10-11 years. The resultant effect & the impact of the compounding of interest will be that their beneficiaries will receive a significantly lower or completely eroded inheritance.
Therefore, for retirees who did not want this scenario, the interest only lifetime mortgage proved an excellent alternative. Obviously supported by a good secure disposable income, the Halifax monthly mortgage payments could be fulfilled, with the resultant effect of keeping the mortgage balance exactly the same for the remainder of the mortgage term.
However, the doomsday scenario did eventually arrive & the Halifax Retirement Home Plan was pulled on 17th August 2011 at very short notice.
Regulation & the FSA Effect
With the FSA (Financial Services Authority) now imposing stricter regulation on interest only mortgages, this has impacted on the whole post retirement mortgage market.
Regulation here should be reviewed & consideration given to the plight of pensioners.
Over 60’s looking for finance have fixed income for life.
They are already drawing their state, private & occupational pensions.
They are therefore in receipt of a guaranteed income for life.
They can’t be made redundant, be off work due to sickness or take maternity leave!
Additionally & historically the retired generation of today have a different attitude to credit & tend to err on the side of caution. They have benefitted from house price booms of the last decades & consequently on the whole have a great deal of equity to release in their properties.
From a lenders perspective you can’t get much better security than this?
So why are the over 60’s being penalised?
After discussions with various lenders their defence has supposedly been the fragility of repayment. Considering monthly mortgage payments are paid by direct debit & pensions & retirement incomes are paid directly into the bank account, this doesn’t seem to hold true?
The distinction should be therefore be made between the people pre retirement & those post retirement with regards to interest only mortgages.
The FSA has understandably clamped down on first time buyers & mid life mortgagors taking out interest only mortgages with NO repayment vehicles. However, this has been to the detriment of pensioners whose cause has been undermined.
So for now we have to accept the level of caution in the mortgage market. However, moving forward consultation & consideration should be given to this corner of the mortgage market as it can have additional benefits to a fragile economy.
The reason being is that pensioners releasing equity in retirement do so mainly for lifestyle reasons:-
- Deposits for the children
All these expenditures for one reason or another will help boost both the local & national economy.
What Interest Only Pensioner Mortgages Are Currently Available?
The aforementioned issues have arisen with the tightening of interest only criteria. Lenders will now insist on most mortgages expiring by age 75 & this will usually have to be on capital & repayment basis. More often than not this will result in the monthly cost being prohibitive, as paying off a mortgage of £50,000 over a short term of say 10 years can be out of most people’s affordability levels!
Nevertheless, a specialist equity release lender has analysed the situation better than most & hence we unveil the Stonehaven Interest Select Plan.
Offering SHIP security & choice as to the size of the monthly contribution, Stonehaven have covered all bases. This interest only lifetime mortgage provides lifetime fixed interest rates starting from just 6.13% thereby offering affordability now & into the future. With pension incomes rising over the years, but the monthly mortgage payments guaranteed to remain the same, the Stonehaven interest only equity release plan provides protection from future increases in interest rates.
However, it doesn’t end there because if financial difficulties do arise then there is always the option to switch it over to a roll-up equity release plan with Stonehaven. No further payments are then required & dependent upon whether the switch was planned ahead or not, will determine whether an extra 0.2% is added to the rate.
Stonehaven are members of SHIP & regulated by the FSA.
Rumour has it that niche lenders are now starting to look into pensioner mortgages & eyeing business opportunities, so there does seem to be light at the end of the retirement rainbow!
If you wish to make an enquiry on the Stonehaven Interest Select call the Equity Release Supermarket team on Freephone 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, Equity Release Supermarket, Financial Services Authority, FSA, Halifax, Halifax Retirement Home Plan, interest only lifetime mortgage, interest only mortgages, Interest Only Pensioner Mortgages, lifetime equity release scheme, pensioner mortgages, SHIP, Stonehaven, Stonehaven equity release, Stonehaven interest select
Posted in Halifax Retirement Home Plan, Interest only Lifetime Mortgages, Interest Only Mortgage | No Comments »
Wednesday, October 19th, 2011
The ever increasing price rises are a concern for everyone. Inflation today has been quoted at 5.4% & therefore pressure is being exerted on mortgage & equity release interest rates. People who have retired and have a limited pension are in a worse situation than in the past. Their pension does not allow them to fulfil even their basic needs, let alone luxuries. In this hard and fast world, pensioners often feel secluded and uncared for.
However, all is not doom & gloom for those with properties & equity tied up within them. Mortgages haven’t tended to be the focus for the retired. Their credit history tends to err on caution rather than frivolous in nature. Yet credit trends are changing with the acceptance of new credit lines & leniency towards the children’s inheritance. So more emphasis is being placed on the release of equity from lifetime mortgage schemes.
If you have not heard about equity release, then we will help you to understand all about it. Equity release schemes allow you to generate extra money over and above your pension. If you are one whose money is in limited supply, equity release schemes could be the answer for you. If you own property, you can apply for any type of equity release scheme. Your property enables you to release tax free cash which can be taken in stage payments or as a one off lump sum. This additional cash helps you to live your life properly and with all the luxuries you have become used to. More common reasons for equity release UK plans are home improvements, new car, holidays, gifting to the children or to help with the purchase of a new property.
There are many plans you can apply for, but drawdown equity release schemes are now the most popular. These roll-up equity release schemes offer an overall cash facility from which you can take money from as & when required. By opting for this formula you will only pay interest on cash actually taken & not the funds still held by the equity release company in their reserves.
Increasing popular are the interest only lifetime mortgage plans provided by companies such as Stonehaven equity release. Helped by the previous popularity of the Halifax Retirement Home Plan, interest only lifetime mortgages have increased awareness of interest paying mortgages in retirement.
Equity release has been in existence for a long time now, but still not everyone knows about it. The equity release trade body SHIP (Safe Home Income Plans) has led a sole crusade in raising awareness by pushing for consumer protection. Thanks to SHIP, today’s equity release schemes can be trusted & applied for without concern.
If you need advice on whether equity release or interest only lifetime mortgages are for you then please contact Equity Release Supermarket on 0800 678 5159 or visit the EquityReleaseSupermarket website.
Tags: equity release, Equity release interest rates, equity release schemes, Equity Release Supermarket, Halifax Retirement Home Plan, mortgages in retirement, release of equity
Posted in Equity Release, Halifax Retirement Home Plan | No Comments »
Thursday, August 11th, 2011
It is with regret that we are notifying all our Equity Release Supermarket enquirers that the Halifax Retirement Home Plan is being withdrawn with effect from the close of business on Wednesday 17th August 2011.
After this date NO further applications will be accepted onto this scheme.
Therefore, to take advantage of this plan all applications must have been submitted by 8pm on the evening of the 17th August 2011.
There is some good news for existing retirement home plan mortgage customers in that they will remain unaffected & their terms & conditions will remain in accordance with their mortgage deed.
Post 17th August, no further applications will acceptable & this will be the last chance to gain access to this unique pensioner mortgage.
With further options for interest only lifetime mortgages remaining limited, act now to secure a last minute place on the Halifax Retirement Home Plan scheme.
To make a last minute enquiry call the Equity Release Supermarket team immediately on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
Tags: halifa retirement home plan mortgage, halifax equity release, Halifax Retirement Home Plan, Halifax retirement Home Plan Mortgage, Halifax Retirement mortgage, interest only lifetime mortgage, interest only mortgage, pensioner mortgages
Posted in Halifax Retirement Home Plan, Latest News | No Comments »
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