Stonehaven Interest Select Plus it one of the many lifetime mortgage plans offered by the company. While the company has not been around for decades, it is well known for providing consumers with quality and forward thinking competitive equity release schemes. Stonehaven started offering products in 2006. They are members of the Equity Release Council, carefully following the ERC Code of Conduct. Additionally, they adhere to Financial Conduct Authority regulations laid out to protect consumers seeking financial products.
Stonehaven provides a range of tiered interest only lifetime mortgages: Interest Select Lite, Interest Select, Interest Select Max and Interest Select Plus. Each of these products has specific criteria that set it apart from other Stonehaven products.
Summary of the Stonehaven Interest Select Plus Plan
The range of interest select plans from Stonehaven is pitched with various loan-to-value ratios. Therefore dependent upon the amount required as a lump sum will determine which Interest Select Plans fits criteria.
In essence the Interest Select Plans work by the borrowing an initial lump sum & then choosing how much of the interest to repay – all or a partial contribution towards the calculated amount. By opting to repay all the interest will maintain a level mortgage balance for the remainder of the plan term.
Under the new FCA introduced rules on MMR, Stonehaven must now check affordability as a lender. Therefore, unlike prior to MMR Stonehaven will conduct an affordability check by requesting proof of all income & the last 3 months bank statements from potential mortgagors.
Criteria of the Stonehaven Interest Select Plus
The Interest Select Plus plan is available for homeowners with property in mainland Scotland, Wales, and England. The youngest applicant must be 55, whether applying as a single homeowner or jointly.
The loan to value ratio will differ between the Interest Select products; however, standard qualification criteria applies. The minimum property value must be £70,000 and a minimal release of £10,000 must be withdrawn as a tax-free lump sum.
It has a higher interest rate than other interest only plans by Stonehaven such as the Interest Select Plan & the Interest Select Lite deal and is positioned to provide a greater lump sum amount than either of these two schemes. It is closer to these two schemes in relation to the interest rate than the Interest Select Max which jumps significantly. For a list of the four tiered Interest Select Plans please contact your equity release adviser here.
Unique Features of this Interest Only Mortgage
The most unique feature is the flexibility to provide a greater lump sum to the homeowner than two other of Stonehaven’s interest only products including the Lite & Select versions from Stonehaven. It also comes with various repayment situations to make it affordable.
If necessary, applicants can roll over this loan into a lump sum plan at any time. If this switch is selected, then interest is no longer repaid on a monthly basis and instead rolls up onto the principle balance taken. This feature ends any worry over missed payments if the homeowner lives longer than projected and no longer has sufficient income for the repayment.
Repayment is flexible. The borrower can repay only £25 per month of interest or the full monthly interest amount. The amount must be selected from the outset & cannot be amended, other than complete cessation of payments as stated previously. Interest is paid monthly to keep the capital sum amount the same for the entire life of the loan; thereby, ensuring there is inheritance left for beneficiaries.
Stonehaven Equity Release Incentives
Stonehaven Interest Select Plus incentives are £1,000 cash back paid at loan completion plus Inheritance protection. Affordable monthly interest repayments are provided too.