Stonehaven have long established a very innovative and unique line of interest only lifetime mortgages 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. The Interest Select products offer you the ability to release equity with the option to pay some or all of the interest that is charged on the loan.
For the Interest Select line of products with Stonehaven, you must be at least aged 55 to qualify and you also must have a property that has a value of at least £70,000. The minimum loan allowed is £10,000. These products are currently available in Wales, mainland Scotland, and England.
The Interest Select products will now be encompassed by the MMR rules rolled out by the Financial Conduct Authority. Therefore, they will now require a minimum amount of evidence to prove affordability via the Stonehaven Online Affordability Calculator. Stonehaven still base eligibility on property value and your age, however with the advent of MMR, mortgage companies must now prove affordability & thus all income types need to be shown as well as general expenditures.
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 the Interest Select Plan, you start with higher loan-to-values than the alternative Interest Select Lite Plan. The LTV’s start at 14% at age 55 and then subsequently increase by 1% for each year thereafter. If you need a greater lump sum up-front, you can look at the other plans as they may offer higher LTV’s.
The Interest Select line of products from Stonehaven allows you to choose the interest amount you want to pay. This means that you are able to pick an amount that will be manageable for you, depending on your particular financial situation. The only requirement is that you must choose a minimum payment amount of at least £25 per month. The maximum you can pay goes all the way up to the entire amount of interest charged each month. If you do choose to pay the whole amount of interest, you will only end up needing to repay the original amount of the loan, which will need to be repaid once the property is sold.
The Interest Select option is a great choice for consumers who are looking to protect some share of their inheritance while also capitalizing on the equity they have built up in their home. Interest only lifetime mortgage schemes provide a form of pension mortgage not offered by the more mainstream lenders.