Stonehaven has one of the best alternatives to the recently withdrawn Halifax Retirement Home Plan. Currently, you find that many retirees are more conscious of their inheritance and finance, which is why the interest only lifetime mortgage plan has been created for them. This package is only available through qualified equity release intermediaries and comes with an element of financial control and flexibility.
This is a great substitute to the traditional roll up equity release scheme. In the case of roll up schemes, interest is added to the principal, which means that the balance continues to increase over time making it unattractive to many pensioners. The parents or retirees can make the monthly payments, though in some instances the heirs make the payments on behalf of their parents. Additionally, it comes in a four-tier approach whereby the loan to value determines the interest rate meaning the higher the loan, the higher the interest rate payable.
This interest only lifetime mortgage plan does not have a specified term. This means that you repay the equity release mortgage when the house sells, when you either move into long-term care or die. The monthly payment is actually a contribution towards interest, which typically makes it a unique plan and you can calculate the interest payable using the stonehaven maximum loan calculator on the website. (more...)