Stonehaven Interest Select Lite provides a minimal lump sum balance to consumers. It is designed for consumers who do not wish to take the maximum sum. Stonehaven is one of the top providers of interest only lifetime mortgages. Since they rolled out their plans in 2006, they have offered the most diversity when it comes to interest only equity release plans.
Stonehaven provides the Lite, Max, Plus, and standard Interest Select lifetime mortgage for their interest only products. Each one has a different loan to value criteria set by homeowners. The lite product is designed for a low capital sum, which also keeps the interest rates lower per month.
Details of the Interest Select Lite
The Interest Select Lite plan is a lump sum interest only mortgage with qualifying criteria based on age and property value. The minimum age for any applicant is 55 years. Even if applying jointly, the youngest applicant has to meet the minimum age requirement. The property value must be £70,000 or more to qualify.
Stonehaven also has a minimum equity release amount of £10,000. It is possible to borrow more based on property value, but not less even with the Lite plan.
As a product for the smallest release of equity available, the interest rates also remain lower. Since it is an interest only mortgage there is a monthly repayment required with the capital sum repaid at death or when the last applicant moves to a care facility.
Unique Features of this Interest Only Mortgage
One unique feature of this loan is the repayment scheme for the interest. It is flexible and designed to meet the needs of homeowners. There is also the possibility of rolling over the loan into a lump sum plan in which the interest rolls up into the principle loan amount. This feature was added to protect aging retirees that may run out of monthly income to repay the loan.
Borrowers must repay interest, but they can pay a minimum of £25 per month instead of the full monthly interest amount. Any interest left unpaid during the month will roll up onto the principle amount. Also the more interest repaid while the loan is outstanding the more value is left for the beneficiaries of the homeowners.
Stonehaven Equity Release Incentives
Stonehaven Interest Select Lite provides £1,000 cash back and comes as an Interest Only lifetime mortgage with Inheritance Protection. It is a non-exclusive incentive package.