Stonehaven’s innovation was unveiled many years ago. They launched a new and market leading line of interest only lifetime mortgages that are specifically designed for those consumers who are most nervous about interest roll-up. This line of products – 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. The Interest Select products offer you the ability to release equity with the option to pay all, or a portion, of the interest that is charged on the loan.
The Interest Select Plus option has a slightly higher interest rate than its counterpart, the Stonehaven Interest Select Lite plan. However, the ‘Plus’ option meets a greater lump sum requirement.
Under the Interest Select Plus plan, you can pick the amount, or percentage of the interest you want to repay. This gives you a great deal of control over your budget and your spending. You are able to decide what amount would fit best within your retirement budget. 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. You can choose to pay back only a portion of the interest set to accrue or you could go so far as to pay off the entire amount of interest. The only payment requirement is that you repay at least £25 per month. If you choose a lesser amount, like the £25 minimum or a small percentage, you aren’t likely to cover much of the interest accruing. So, your loan is likely to continue to increase. However, making any payment is better than making no payment at all. If you decide to pay all of the interest accruing on your loan, you will only need to repay the original release amount.
This line of products is available to consumers in Wales, mainland Scotland, and England. In order to be deemed eligible for the Interest Select Plus plan, you must own a property that is worth at least £70,000. You must also be at least 55 years old.
The Interest Select Plus 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.
Stonehaven now require income affordability checks to be performed to evidence affordability. They will therefore require proof of income along with an idea of regular outgoings. As a contingency, Stonehaven will consider an outside party such as family person’s income that could be made towards the monthly payments for qualification.