|Stonehaven Equity Release - Stonehaven Interest Select Plans|
Stonehaven Equity Release Plans
(please note that with effect from 26th May 2015, following Stonehaven's acquisition by MGM Advantage, Stonehaven equity release have now been rebranded as 'Retirement Advantage')
*All references to Stonehaven therefore will now be Retirement Advantage.
Innovative by nature, Stonehaven offer the equity release market three alternatives in deciding which form of equity release suits you best. Stonehaven offer an interest only lifetime mortgage, a roll-up equity release scheme or their latest innovation, the Stonehaven Voluntary Select Options Plan.
Dependent upon your requirements, Stonehaven will have equity release schemes to suit, & also a competitive interest rate to match any other equity release mortgages available.
Stonehaven's Range of Equity Release Plans
• Interest Select Options - Stonehaven's principle offering is their Interest Select range of plans which in essence are interest only lifetime mortgage deals. These interest only plans allows you to maintain monthly interest payments for the rest of your life. By repaying the interest only element, you can be safe in the knowledge that the original mortgage balance will remain exactly the same for lifetime of the mortgage.
Stonehaven Equity Release Schemes in more detail
Since MGM Advantage rebranded Stonehaven as Retirement Advantage, the entire equity release product range has been condensed somewhat. The Interest Select Range is now two products, which are the Interest Select Gold & the Interest Select Platinum. The difference between these two interest only lifetime mortgage products is the interest rate applicable and the maximum loans each will provide.
How the Interest Select Plans work
This interest only mortgage is an alternative to conventional roll-up equity release schemes. Whereas roll-up equity release plans have interest added resulting in the balance increasing over time, the Stonehaven Interest Select plans help to maintain a level balance for as long as payments are continued. This is down to the option of paying the interest off each month by direct debit.
The Stonehaven Interest Select plan is classed as an interest only lifetime mortgage as there is no specific term applied to this scheme. This form of retirement mortgage is therefore only repaid once the house is eventually sold, on earlier death or moving into long term care.
Payment Proof Security
* Stonehaven/Retirement Advantage now offer a £1000 cashback on its plans.
The two plans vary in the amount each plan will lend & the interest rate thereon. Starting at 6.29% monthly is the Voluntary Select Gold plan with a starting age of 55 and a loan-to-value at that age of 19%. This percentage of the property value rises yearly to a maximum of 44% at age 80.
The representative figures for the Voluntary Select Platinum plan is an interest rate of 6.85% monthly, starting with a loan-to-value of 24% at age 55 and a maximum loan-to-value of 49% at age 80.
How the Voluntary Select Plans Work
Effectively, Stonehaven will permit the repayment of upto 10% of the original amount borrowed each year without any penalty being applicable. Therefore, the homeowner can manage their future equity release balance as they think fit. This can be important for those with a low risk profile & wish to protect their final inheritance for the children. This can be repaid either by standing order, cheque or via a bank transfer following a phone call to Stonehaven's administration department. The minimum repayment is £50 & the frequency is unlimited which gives the Stonehaven plan a real boost over Hodge Lifetime & Aviva's versions.
The Voluntary Select repayment plan differs from Stonehaven's interest only lifetime mortgage range as it does NOT need any proof of income to qualify for the amount that can be borrowed. It therefore falls outside the clutches of MMR. The mortgage could theoretically be therefore classified as a self certification or 'self cert' mortgage as NO income checks are required by Stonehaven. The amount that can be borrowed is based on the age of the youngest applicant & the value of the property. Criteria for the property is the same as the Interest Select range; £70,000 minimum property value, £10,000 minimum loan and Stonehaven will lend in England, mainland Scotland & Wales.
The area where the Stonehaven Voluntary Select Repayment Plan will have the edge over the other voluntary plans is when payments of interest and/or capital can commence. Whereas Aviva & Hodge Lifetime only allow initial payments after the first anniversary, Stonehaven will permit payments to commence immediately the plan starts. Therefore, with careful planning from your Equity Release Supermarket adviser, we can tailor your plan to suit your future goals; be it an interest only lifetime mortgage plan, or theoretically by repaying the full 10%pa it could actually turn into a capital & repayment mortgage with a fixed interest rate over 16-17 years!
Now this can help solve the interest only issues particularly when many lenders won't lend too far into retirement. We now have a pensioner mortgage that can lend beyond age 75, on an interest only basis, with no repayment vehicle required & with no proof of income requested. A retirement mortgage solution for 2015 & beyond.
Stonehaven's Interest Select & Voluntary Repayment Plans are an alternative to equity release roll-up.
• Debt consolidation purposes
Stonehaven Provide Interest Only Mortgage Solutions From Demanding Lenders
LATEST developments have certainly taken place in the interest only mortgage market, primarily where people coming upto retirement have no repayment vehicle to clear their mortgage, or have a shortfall to clear it.
Thinking lenders would simply extend the term, these interest only mortgagors have woken to the shock of finding out that repayment is being immediately demanded by the lender, be it Santander, Barclays, Natwest etc!
This therefore raises serious issues regarding how repayment is to be tackled: -
• Sell the property to clear the loan
Of the alternatives mentioned above, Stonehaven have become one of the few companies to offer a way out of this worrying dilemma. Many people do not want to go to the lengths of selling their home, afterall they have gotten where they are now because of the mortgage & see their retirement being spent living there.
Further developments in the mortgage industry with MMR (Mortgage Market review) has lenders now reigning in their interest only mortgage range & ensuring criteria is stricter on lending into retirement, thus few mortgages for pensioners now exist.
Therefore, as a specialist in this field Equity Release Supermarket can recommend Stonehaven as a solution to the interest only mortgage problem. Providing loan-to-value is within guidelines and affordability can be shown (post MMR), then Stonehaven could offer an olive branch to those interest only time bombs which they can defuse with their interest only lifetime mortgage range.
Therefore, all is not lost for this category of mortgage customers & relief is on hand with the range of Stonehaven Interest Select & Voluntary Repayment Plans.
For further information on any of the Stonehaven equity release schemes please visit our Compare Equity Release Deals table.
Alternatively, you can speak to a local specialist Equity Release Supermarket adviser on Freephone 0800 678 5159.
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