Stonehaven equity releases are naturally innovative and are currently offering two different kinds of lifetime mortgage alternatives to choose from. Which equity release is better for you is something you will need to answer. Stonehaven offers you the opportunity to select what is best for your current situation and it might be either a roll up equity release or an interest only lifetime mortgage. Additionally, they are offering very competitive interest rates compared to many providers in the equity release market at the moment.
If you are still wondering which equity release is best for you, consider Stonehaven’s principle offering, the interest select plan, which ideally is an interest only lifetime mortgage plan. This plan allows you to continue with the same monthly interest payments for the entire term, which essentially is the rest of your life. You are sure that the initial mortgage balance will never change, owing to the fact that the interest only element is repaid every month, thus ensuring the mortgage balance remains static.
The interest select plan is a great alternative to the recently withdrawn, Halifax Retirement Home Plan. Apparently, many pensioners are increasingly aware of their finances and potential inheritance, making the interest select plan a perfect idea for them. It is a great option if you have the income to repay the interest during your lifetime rather than letting it remain at the end with the principle balance also remaining like the roll-up plan.
The other equity release scheme from Stonehaven is the roll-up lifetime mortgage that is particularly common with many pensioners. It allows them to release cash and has the benefit of being tax-free. However, this time there are no monthly payments. Therefore, the interest charged is instead added to the equity release mortgage balance and compounds monthly or annually depending upon the lender. Stonehaven equity release rates currently vary from 6.13% to 7.57% per month or APR. Check with Stonehaven to determine if the rate is per month or if it is broken down into an annual percentage rate, in which case 6.13% is spread out over 12 months.
Assuming a property value of £200,000 and applicant of age 60, then all of the Stonehaven schemes would be eligible. For instance:
• The interest select lite at 6.13% = £32,000
• The interest select at 6.24% = £38,000
• The interest select plus at 6.67% = £44,000
• The lump sum lite at 6.13% = £32,000
• Lump sum at 6.24% = £38,000
These statistics tell you that there is a lot to choose from at Stonehaven, and the best way to make a wise choice is to speak to your equity release advisor. Tell them about your financial circumstances including plans for the future, and they will match you up with the best Stonehaven equity release plan.
Stonehaven’s criteria for their different plans are dependent on the minimum starting age, which is 55, and a property valuation of £70,000. They will only consider accepting properties in Wales and England. The minimum loan is just £10,000 with the maximum being dependent upon age and property valuation which means, it can be up to 44% of the property value. The Stonehaven mortgage can be classified as self-certification as you do not have to provide proof of income to Stonehaven. This can be particularly beneficial if proof of income in retirement is difficult or the children are more than happy to cover the costs of this equity release in order to protect their inheritance.
Some plans available will require you to certify your income and ensure it is disposable. They are also not going to accept a child paying the interest fee unless that person lives in the same home. They will not be able to remain in the home unless you stipulate it in the agreement or if they are over the age of 55. It is always best when you ask which equity release to keep your family aware of your financial decisions.
By helping your family remain aware of your situation they can understand what you face, what might help you and help you decide on which equity release is the best plan for you. It is also best to speak with two advisers: one with the equity release company and an independent person. In this way you have two opinions, plus your families thoughts ensuring the decision you make is the correct one. Also remember there are more plans than those discussed here that could work better given your age, health, and other considerations.