Stonehaven has offered equity release plans since 2006. Their products are available to anyone over 55 who is in need of a lifetime mortgage. They provide a variety of different types of equity releases, while maintaining their award-winning status. Stonehaven follows all Equity Release Council and Financial Conduct Authority requirements including the no negative equity guarantee. Their products come with fixed interest rates for the life of the loan, with a transfer option, as well as interest only lifetime mortgage product.
Type of Plans
Stonehaven offers the lump sum lite, lump sum, interest select lite, interest select plan, interest select plus, and interest select max. They do not have a drawdown lifetime mortgage on the market. Their plans are considered roll-up or interest only lifetime mortgage.
The lump sum products including lite and standard are roll-up lifetime mortgages. It means the interest is going to accrue onto the principle balance of the loan until the end of life or move into long term care. The lite version offers a lower loan to value amount. It is set at 11% for people 55 years old. The lump sum option is their standard loan to value amount, which is typically around 14% for anyone 55 years old.
The interest select plans are all lifetime interest only mortgages, where a chosen payment of interest is required each month. The interest does not accrue as long as the full amount of interest is repaid each month. If so, the principle balance remains the same for the entire life of the loan.
Stonehaven requires all homeowners to be a minimum of 55 years of age with a property value minimum of £70,000. The minimum release value is set at £10,000 for all loans. It is possible to rollover any of the interest select plans into a lump sum plan later in life if it is needed. The monthly payments will then stop and an adjustment would be made to the interest rate, unless this was pre-arranged at inception of the plan.
These plans are available to homeowners in England, Wales and mainland Scotland.
Under the interest select plans there are flexible repayment options. Homeowners can elect to repay as little as £25pm or upto the full amount of interest charged. By repaying the full interest amount that has accrued the homeowner keeps the balance the same and therefore renders any inheritance protected.
If the loan is rolled over into a lump sum, the interest will begin to accrue at a fixed rate until the home is sold to repay it. There is a no negative equity clause which protects the beneficiaries ever owing any more than the total value of the property.