Flexible drawdown plan welcomed

Equity release provider Stonehaven has launched a 5.79% flexible drawdown plan.

Called Flexible Cash Release Lite, it has a minimum initial advance of £15,000 and allows for further minimum drawdowns of £2,000 from a cash reserve facility.

The deal guarantees that a portion of the facility will be available for the lifetime of loans regardless of house price and interest rate fluctuations.

Georgina Smith, sales and marketing director at Stonehaven, says: “We originally offered this product at £20,000 with minimum drawdowns of £5,000 but brokers said clients were looking to take out less.

“This is a great offering at a time when clients are feeling uncertain.”

Mike Fitzgerald, sales director at Brentchase Financial Services, says: “It sounds like a great plan. Accumulating debt on mon-ey that need not be taken out is a common concern among clients releasing equity.

“It will comfort them to know they have the security to take out what they need without facing high interest rates on money they don’t need.”