Stonehaven began offering equity release UK products in 2006. The company has a range of lump sum & interest only lifetime mortgage products like the Stonehaven Lump Sum Lite, which is a lifetime mortgage with a competitive interest rate. This mortgage was designed for consumers who need a smaller lump sum than the maximum, which in return offers a lower interest rate than its other tiered products.
The Lump Sum Lite is a lifetime mortgage categorised as a lump sum versus interest only, home reversion, drawdown or other equity release products. It is designed to offer homeowners a smaller lump sum in return for a lower interest rate.
Criteria for the Stonehaven Lump Sum Lite Plan
The Stonehaven Lump Sum Lite plan is for available for individuals 55 years or older. The plan is available in Wales, England, and mainland Scotland. A minimum property value of £70,000 is required and homeowners have a minimum initial withdrawal limit of £10,000.
The interest rate is fixed for the life of the loan and similar to other roll-up equity release schemes, the interest compounds annually, thus seeing balance gets larger over time. This compounding effect continues for the life of the applicant, or when the applicant decides to move to a long-term care centre. At that point it would need to be repaid within 12 months which is mostly via the sale of the property.
This mortgage is designed for any homeowner in need of extra retirement funds. It fulfils the Equity Release Council Code of Conduct including a no negative equity guarantee to protect the homeowner against owing more than the final value of the property when it is sold.
Unique Features of Stonehaven’s Lump Sum Lite Mortgage
Stonehaven Lump Sum Lite is not designed for a large maximum lump sum release, but for homeowners who want a lower, more favourable annual percentage rate (APR). The rate is fixed for the term of the loan based on the age of the applicants.
An additional feature is the Protected Equity Option. It is an inheritance protection guarantee homeowners can elect to add on to their loan. The feature is designed to leave a guaranteed inheritance for the beneficiaries.
Partial repayments are permitted on the Stonehaven Lump Sum Lite product but would be subject to any potential early repayment charges at the time. Early repayment charges apply and are linked to the FTSE UK 20 year gilt yield index and the size of the penalty is determined by the fall of the gilt index.
Final repayment is based on the death of the single or joint applicants. Repayment is due at death or when the home is no longer the main residence. Repayment in full based on the capital tax-free sum awarded at the completion of the paperwork, plus interest compounded on to the loan for the entire term.
Stonehaven Equity Release Incentives
Stonehaven’s Lump Sum Lite is a non-exclusive incentive package with competitive low interest rates and a £1,000 cash back allowance. If the cash back incentive is taken there is a 0.1% increase to the interest rate, which is set at the time of completion.