Bright Future for the Stonehaven Interest Select Plan
Depending on what your needs are in terms of equity release, Stonehaven has something that will suit you and offer interests rates that are competitive. Stonehaven are also part of the Equity Release Council and they are regulated by FSA.
The Stonehaven Interest Select plan is an interest only lifetime mortgage. With this plan you only pay the interest part of the plan meaning that the mortgage balance will stay the same. The alternative equity release scheme that Stonehaven offer is the traditional roll-up interest scheme, that gives you an initial tax free cash lump sum, but with no repayments each month.
This is the advantage that Stonehaven have to offer – the choice of whether you wish to make monthly payments of interest, or not? Ultimately this decision will affect your beneficiaries, hence make sure you make the right choice, for the right reasons.
Many pensioners are becoming aware of retirement finances as well as the inheritance they wish to leave behind. Changing attitudes towards one’s inheritance has seen a sea change of belief in that once it was paramount to leave the children everything, to a more relaxed approach nowadays in that they could have something.
The Interest Select plan from Stonehaven has flexibility and provides financial control. The payments are made by those who took out the plan, or their children can pay towards this in order that their inheritance is protected.
Stonehaven makes no income checks and the plan is often seen as a self-certification mortgage, great for those who may had had adverse credit in the past. The amount that can be borrowed is dependent on the age of the youngest applicant and the property value. The mortgage is repaid upon the sale of the house, due to death of the applicant or because they have had to move into long term care.
The monthly payments are unusually classed as a ‘contribution’ as you can pay some, or all of the interest that is charged each month. The minimum that needs to be paid is £25 per month. If you pay all of the interest each month then the Stonehaven Interest Select mortgage balance will remain level and the inheritance can be worked out.
You are then able to pay what you can afford each month and maintain a budget to include this. Another advantage of the Interest Select plan is that the interest will be fixed for the rest of your life. The interest then will not fluctuate as with the rest of the market. This can provide peace of mind, knowing EXACTLY what you monthly payments will be for the rest of your life.
If you have a problem paying the monthly instalments, the Stonehaven Interest Select plan will allow you to stop the payments. Instead of repossession, Stonehaven will automatically switch you over to a roll-up scheme, requiring NO monthly payments. A sensible approach.
Stonehaven is one of the most popular lifetime mortgage providers, especially with their Interest Select plan because the customer has control of what they pay and what they don’t. It is seen as a modern flexible approach, with no back lash or consequences if you can’t pay the instalments.