Stonehaven suspends lending as funding dries up
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Stonehaven temporarily suspended new lending last week due to lack of funds.
The equity release provider says it is now focussing on its adviser arm and servicing its large back book.
All offers made by Stonehaven will now be valid for six months instead of the usual three.
Georgina Smith, sales and marketing director at Stonehaven, says: “We still believe in equity release and look forward to lending again at some point.”
Saffron Building Society and Coventry Building Society suspended equity release lending in 2009, along with Northern Rock.
Dean Mirfin, group director of Key Retirement Solutions, says: “Stonehaven is the first lender predominately focussed on equity release to withdraw from the sector, which shows there’s a real funding problem.
“It’s tough for small lenders but there is a concerted effort between lenders and trade bodies to seek out funders that may not have looked at the sector before. There’s a lot of interest but it may take time for this to convert into investment.”
