Stonehaven has created a very strong range of interest only lifetime mortgage schemes that are specifically designed for those consumers who are most apprehensive about interest roll-up. This line of products – ‘Stonehaven Interest Select’, is designed for those consumers who want to release some equity from their home, but who are also able to service either all, or at least some, of the debt.
With the Interest Select products, you as the consumer are able to choose how much interest you want to pay. You can choose anywhere from £25pm all the way to 100% of the monthly interest charged. The only requirement here is that you make the minimum payment of at least £25 per month. You can then choose the period over which you want to pay. So for example, you could choose to pay over the entire course of the loan or you could choose to pay for a set number of years e.g. one, five, or ten years. This could coincide with a financial future event such as retirement or a pension coming into payment.
There are some other options available with the Interest Select line of products as well. For example, if you choose to release any amount over £40,000, you can make a decision as to whether or not you would like to receive £1,000 cashback. Upon completion, this would be given to you at the same time you receive your initial lump sum. If you decide to receive the cashback, you will not be required to repay it if you redeem your loan and it will not be added on top of your outstanding balance.
All four of the products in this line are available in Wales, mainland Scotland, and England. Plans starts at just age 55. Furthermore, there is a minimum release of £10,000 required and you must have a property value that is at least £70,000.
There are slight differences between the four options in the Select line of products. Basically, the differences pertain to the interest rate you will pay and the amount of cash you can borrow. With this Interest Select Max Plan, you have the highest loan-to-value starting at 19% at age 55 and increasing by 1% up until age 75. After that, the plan maximum would be to release 39% of the property valuation.
There is a great deal of flexibility allowed with the Interest Select Max Plan. You can switch this scheme over to a roll-up scheme at a later date should you wish to cease payments for any particular reason. You may need to do this if you find that it is best financially or that you just need a break from making monthly payments.
This Max interest only lifetime mortgage in the Interest Select line from Stonehaven is best suited for those who want to get as much as they can from their property. By using this product, you are able to maximize what you get from your property while also protecting some kind of inheritance for your beneficiaries.