Stonehaven created very innovative and creative line of lifetime mortgages that are specifically designed for those consumers who are most anxious about interest roll-up. This line of products called the Interest Select range, is designed for those consumers who want to release some equity from their home but who are also prepared to service either all, or at least some, of the debt. The Interest Select products offer you the ability to release equity with the option to pay all of the interest charged on the loan, or a proportion of it.
The Interest Select Lite option in this line of lifetime mortgage products has the lowest interest rate than the rest of the Interest Select product range, but does offer a lower lump sum provision. You can determine the amount of interest set to be repaid. This means that you are able to decide what amount would fit best within your retirement budget. This is one area of this line of products that gives consumers the most control. Because you are the one who determines what to pay back, you can rest assured that you will always be able to afford your payment as the interest rate is fixed for life & can therefore never change.
You can choose to repay only a portion of the amount owed or you could even decide to pay all of the interest accruing. The only requirement is that you repay at least £25 per month. If you choose a low amount, like the £25 minimum, you most likely will not cover much of the interest accrued. This means that you may still end up owing more than the original loan amount. However, this is still indefinitely better than if you paid absolutely no interest over the course of your loan term. If you decide to pay all of the interest accruing on your loan, you will only need to repay the original release amount.
Stonehaven now require income affordability checks to be performed to evidence affordability. This is due to the implementation of the Mortgage Market Review (MMR) which insists that lenders must now prove customer affordability. Stonehaven will therefore require proof of income along with an idea of regular outgoings. As a contingency, Stonehaven will consider family members contributions towards the monthly payments for qualification.
This Stonehaven Interest Select Lite Plan is available to consumers in mainland Scotland, Wales, and England. In order to be eligible for the Interest Select Lite plan, you must be at least 55 years old and have a property with a value that is at least £70,000. You must also release at least £10,000. The Interest Select Lite plan can be transferred over to a roll-up scheme at any time. This would be a good option if you were anxious about potentially missing any payments. The Interest Select schemes from Stonehaven will work perfectly for you if you are anxious about interest roll-up and would like control over the interest accruing on your loan.