The Stonehaven Interest Select Lifetime Mortgage has been designed to offer the homeowner the opportunity to pay some or all of the interest each month.
On a £40,000 loan a monthly payment of £30 over 25 years could reduce the eventual amount owed by £21,000.
Additionally, as this is a lifetime mortgage, Stonehaven will not repossess the property if the homeowner cannot afford to keep up the payments. Instead the loan will revert to a roll-up loan, providing extra reassurance in uncertain times.
With interest rates starting from 6.08%, Interest Select adds to Stonehaven’s growing batch of unique equity release products and is an enhancement of Stonehaven’s best selling product, interest only, which enabled customers to pay off all of the interest each month.
Stonehaven are hosting a series of roadshows to launch the new Interest Select product.
They will be in London, Manchester, Leeds, Bristol and Coventry over the next three weeks to advise IFA’s on what the new product entails.
Jayne Almond, chief executive of Stonehaven, says: “The Interest Select product reflects the needs of our customers who are seeking to take a more hands on approach to managing the interest on their lifetime mortgages.
“Interest Select provides a level of flexibility that current economic conditions demand and it is the only product on the market that allows mortgagees to actively control the amount of interest accrued to their final lump sum.
“Innovation and adaptability are vital if the equity release market is to truly help consumers during what will be a difficult financial year. We feel that Stonehaven’s considerable range of solutions meets the demands of what is a rapidly evolving sector.”