Lifetime mortgage specialist Stonehaven has lifted the maximum loan it will advance to borrowers to £4 million, in response to growing demand from asset-rich older homeowners.
Until now the maximum loan amount offered by Stonehaven was £750,000 in London and South East and £500,000 elsewhere.
The company will also now lend against properties worth up to £10 million, up from the previous limit of £4million in London and the South East and £1million elsewhere.
The higher threshold has been developed in response to requests from financial advisers to provide a lifetime mortgage solution that will cater for higher asset rich individuals – for example, those wanting to manage their own inheritance tax planning or leave a legacy to children today, and to help people facing interest-only mortgage worries.
For older homeowners who no longer have a repayment vehicle in place and are facing restricted lending criteria from mainstream lenders, a lifetime mortgage can be used to release a cash lump sum to pay off the debt at the end of the mortgage term.
As part of this move, Stonehaven says it will be the only equity release provider in the UK that permits monthly interest payments on larger loans.
Geographical constraints are also being lifted, with new standard value thresholds right across the country, not just in London.
Lifetime mortgages are only available through financial advisers and Stonehaven advises that the decision should be made in conjunction with family members.
Alice Watson, product and communications manager, Stonehaven said: “The fact is that lifetime mortgages are fast becoming a more mainstream and popular product with growing need from more wealthy borrowers.
“Not everyone wants to downsize, and offering larger loans means our customers can remain in their home and have greater peace of mind whilst protecting or managing their future legacy.”
“In many circumstances, the family pays the interest to avoid the impact of interest roll-up, which is a sensible solution for older homeowners who would like to enjoy their remaining years and maintain the family home.”
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