16 June 2014
Equity Release
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Choose the Right Equity Release Plan from Stonehaven’s Portfolio of Products

Stonehaven has one of the best alternatives to the recently withdrawn Halifax Retirement Home Plan. Currently, you find that many retirees are more conscious of their inheritance and finance, which is why the interest only lifetime mortgage plan has been created for them. This package is only available through qualified equity release intermediaries and comes with an element of financial control and flexibility.

This is a great substitute to the traditional roll up equity release scheme. In the case of roll up schemes, interest is added to the principal, which means that the balance continues to increase over time making it unattractive to many pensioners. The parents or retirees can make the monthly payments, though in some instances the heirs make the payments on behalf of their parents. Additionally, it comes in a four-tier approach whereby the loan to value determines the interest rate meaning the higher the loan, the higher the interest rate payable.

This interest only lifetime mortgage plan does not have a specified term. This means that you repay the equity release mortgage when the house sells, when you either move into long-term care or die. The monthly payment is actually a contribution towards interest, which typically makes it a unique plan and you can calculate the interest payable using the stonehaven maximum loan calculator on the website.

This implies that you can choose to pay all or a part of the interest payable each month, while the minimum payable is £25 monthly, with the maximum being the total due for the month. If you choose the latter option, you will maintain a level balance and your heirs can tell how much they will inherit in the end.

The other main advantage is that it offers a fixed interest rate for your lifetime allowing you to anticipate the level of monthly payments as well as interest rate payable.

Additionally, Stonehaven has a maximum release calculator on their website that you can use to calculate how much you need to get to any of their tier categories. After this, you can work along with them to tailor the proposal towards their generous rates that start at 6.08%. The rates run upto a maximum interest rate currently of 7.10% which will be when any borrower is taking an amount on the highest releases. As previously stated this interest rate does not change during the lifetime of the equity release, unless you decide to stop repaying the interest and convert over to a roll-up scheme which uniquely Stonehaven do permit.

Their plan allows you to make consistent, but flexible monthly payments and in case you run into financial trouble, and are unable to keep up with the monthly payments you need not worry. They can allow you to stop the payments, and instead allow the interest to roll up and add it onto the overall balance without any adverse effects to your payment history.

For further information on the Stonehaven Interest Select Plans contact equity release specialists – Equity Release Supermarket on 0800 678 5159.

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