The Stonehaven Interest Select Plan has been designed for pensioners who are conscious of their inheritance and their financial stability in their retirement years. Stonehaven is a reputable provider that is regulated by the policies of the Financial Conduct Authority (FCA) and is a member of the Equity Release Council organisation (formerly SHIP).
Interest Only Plan
The Stonehaven Interest Select Plan is in essence an interest only lifetime mortgage for people who are above 55 years of age. The Interest Select Plan and the alternative roll-up lifetime mortgage schemes are both offered by Stonehaven. The Interest Select Plan has increased in popularity due to the fact that it does not keep adding interest to the initial loan amount resulting in a higher balance over time. The Interest Select Plan makes it possible for the interest amount to be paid every month thus keeping the balance level. With interest rates that are as low as 5.94%, Stonehaven offers one of the lowest equity release interest rates that are currently available in the equity release market.
Retirement Home Plan
The Interest Select Plan is an entirely different concept to the Halifax Retirement Home Plan which was recently withdrawn in August 2011. The scheme works the same as the Halifax Retirement Home Plan as you must pay back the interest each month to retain a level mortgage balance. Stonehaven offers more options. If it becomes a struggle to make the monthly interest payments, homeowners can easily switch onto a roll-up plan. This will remove the burden of monthly payments and provide homeowners peace of mind. Stonehaven’s Interest Only Lifetime Mortgage plans are now governed by the rules of the Mortgage Market Review (MMR). Therefore, affordability is now evidenced by Stonehaven to ensure affordability of the monthly payments.
Requirements for Stonehaven Plan
In order to obtain a loan for Stonehaven, you need to be at least 55 years old and your property should have a minimum value of £70,000. These are the only two criteria that should be met in order to obtain the loan. The income of homeowners does now have to be proven by way of pension statements and bank statements. This is why the Interest Select Plan cannot now be classed as a self-cert or self-certification mortgage, which does not require a proof of their income.
The payments are seen as contributions of the interest which makes it possible for you to decide whether to pay all or just some of the interest, as this is an excellent option which Stonehaven provide. The minimum amount that you can choose to pay is anything from £25pm up to the full interest charged. If you choose to pay the full interest amount per month, the balance will stay the same throughout the duration of the mortgage. If not, a roll-up will occur increasing the balance. However, some contribution rather than none at all will slow down the roll-up nature of the contract.
Getting Advice Regarding Lifetime Mortgages
The above information is about specific plans that could be used for your mortgage needs. You should also get advice from an independent financial adviser regarding these plans. You do not want to choose something simply because you’ve read an article and it sounds good. There are definitely differences with the various lifetime mortgage options. The discussion has not yet included home reversion concepts which are increasingly difficult to find.
• Home reversion is not a mortgage at all. You actually sell a part of your home and take advantage of the cash payment. It is a percentage of the home rather than full value. For many this works out great if they do not want to have a repayment at the end of their lives. Plus there is no interest accruing. The last benefit is that a person lives rent free in the home until they die or decide to move out. You have to be 65 though.
As you can see there are different options when it comes to getting a financial product for your retirement. While the interest only plan sounds great, you may find there is something better. On the other hand the benefits of the Stonehaven product have worked for many consumers and it continues to be a worthy plan for you to consider.
A part of getting advice is also about speaking with your family. Your family inheritance is at stake when you sell your home or have a mortgage left on it. Your family needs to be aware of your thoughts and often times they can point out things you might have missed regarding the contract.
If the Stonehaven Interest Select Plan is to your liking then we can recommend calling free phone 0800 678 5159 where a Stonehaven specialist is on hand to answer any questions. Ask about details of the plan, but do not forget to compare different products and ensure you are ready to make a sound decision.
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