Stonehaven offers two options for equity release. These two options are: a roll-up equity release scheme and an interest-only mortgage. In order to determine the better option, Stonehaven will look at your requirements and will then determine the best option with the most competitive interest rate. Both of the Stonehaven equity release plans make it possible for pensioners to obtain mortgagees while at the same time; they are offered flexibility and financial control.
The roll-up equity plan is a very common option for pensioners today. It allows them to release money that is free from taxes without having to pay monthly payments. The roll-up equity plan of Stonehaven however adds interest thus resulting in an increase of the mortgage balance over the years.
The interest-only deal on the other hand is more beneficial to pensioners. When it comes to the interest-only plan, Stonehaven offers a plan in which pensioners will have to pay monthly interest-only payments for the rest of their lives thus ensuring that the original mortgage balance will never change during the duration of the mortgage. The monthly interest-only payments are normally made by the pensioners but in some cases, their children are allowed to make the payments as a protection of their inheritance.
In order to apply for a Stonehaven interest-only mortgage, a person needs to be 55 years and must have a property with a value of £70,000. Currently only properties in Wales and England are accepted. The minimum loan that can be obtained is £10,000 and can be increased to a maximum of 44% of the value of the property.
The interest select plan is a interest-only lifetime mortgage which means that there is no fixed duration applied to the scheme. It is only paid back if the property is sold or if the borrower dies. The interest is fixed for the duration of the mortgage which means that the monthly interest-only payments will never increase. They will remain the same.
This scheme is flexible in that people are given the opportunity to make payments that are affordable and that fits their budgets. The monthly interest-only payments are commonly called contributions in that a person can choose to pay a part of the interest payment or the entire interest payment. This depends on how much he can afford.
There are many benefits to a Stonehaven interest-only mortgage plan especially for pensioners.