In 2006, Stonehaven launched their lifetime mortgage options. They have now been taken over by MGM Assurance who are expected to develop & support new products with Stonehaven’s innovative management team. To make certain all consumers of retirement age can find a product that best fits them the company provides a wide range of expertly created mortgages, which are held to proper service standards. Stonehaven Interest Select is only one of the lifetime mortgage products by the company.
Stonehaven has several interest only lifetime mortgages available on the market. Each Interest Select mortgage has specific features that make it unique. The Interest Select plan is for the average homeowner who is not looking for a maximum lump sum, but may want more than the Interest Select Lite plan offers.
Criteria of the Stonehaven Interest Select Plan
The Interest Select Plan is available for properties located in England, Wales, and Scotland (mainland). A homeowner must be 55 years of age to qualify. If filing a joint application, the youngest homeowner must be 55 years old.
This is an interest only lifetime mortgage, where the homeowner pays interest each month, but the capital loan amount remains the same should the full amount of interest charged be repaid. Each interest select plan offered by Stonehaven has a different loan to value criteria, with a minimum property value required of £70,000. The minimum lump sum release is set at £10,000.
As a product designed to meet Equity Release Council Code of Conduct rules, there is a no negative equity guarantee to protect the homeowner from owing more than the current home value at the time of repayment. It also includes some inheritance protection since the principle balance remains the same, but interest is repaid. As long as the home value remains the same or does not depreciate below the principle sum, there is an inheritance available.
Unique Features of this Stonehaven Interest Only Mortgage
Under the new MMR rules Stonehaven has had to move away from not requiring any proof of income and the previous classification of being denoted a self-certification or non-verification mortgage has now been removed.
Eligibility is based on age and property value which provides an overall maximum ceiling to the lending amount. This amount will then need to be supported by income verification which needs to support the amount being borrowed & subsequent monthly payments.
Upon producing a Stonehaven Interest Select quote, the equity release specialist will know the qualifying net disposable income amount the applicant needs to show as this will be advised therein. It is then down the applicants to show proof of this supporting income along with 3 months bank statements to show receipt of this income.
The scheme is flexibility too, in that homeowners can roll over to a lump sum scheme later if missed payments or fear of missed interest payments occur.
Some or all of the interest accrued in the month can be repaid based on the Interest Select Plan chosen. This plan has a flexible repayment option in which £25 per month can be repaid as a minimum amount and anywhere from there upto the full amount of interest being charged.
The principle balance is only repaid at the end of the applicant(s) life or moving into a long term care centre.
Stonehaven Equity Release Incentives
The Stonehaven Interest Select plan charges only interest offers inheritance protection and £1,000 cash back allowance as non-exclusive incentives.