Equity release provider Stonehaven is reducing by 0.5 per cent all rates in its Interest Select Lifetime Mortgages.
The flagship product range gives borrowers the chance to potentially avoid all negative effects from interest roll-up and offers an opportunity especially to retired homeowners with residual mortgage debt to manage their repayments.
“A growing number of homeowners are facing restricted lending criteria from the mainstream lenders and are unable to clear the hurdles imposed by the MMR rules brought in last year. By having the opportunity to pay some, or all, of the interest each month, the lifetime mortgage operates in a similar way to that of a mainstream mortgage where borrowers can maintain control of their loan and maintain peace of mind,” Tom Evans, managing director of Stonehaven, says.
What Stonehaven is changing:
|
Product type |
Old Monthly Rate |
NEW Monthly Rate |
|
Interest Select Lite |
5.94% |
5.46% |
|
Interest Select |
6.03% |
5.56% |
|
Interest Select Plus |
6.08% |
5.60% |
|
Interest Select Max |
6.78% |
6.30% |
The rate change would lead to annual savings of £243 for a typical client paying 100% interest and borrowing £50,000 on Interest Select Lite. Over an expected 20-year term, savings would sum up to £4,862, Stonehaven said.
Last year, Stonehaven lifted the maximum loan it will advance to borrowers to £4 million and is the only lifetime mortgage provider which will lend against properties worth up to £10 million right across the country.
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