Retirement Advantage Interest-Only Lifetime Mortgages
Retirement Advantage, previously also known as Stonehaven Equity release, offers a portfolio of interest-only lifetime mortgages. These products are most suitable for those homeowners who are over age 55, would like to release equity from their property but also be able to pay some, or all of their interest charged. This range of products is unique from traditional lifetime mortgages as they allow homeowners to make payments toward their accruing interest on a monthly basis & without any proof of their retirement income.
The Interest Select suite of products works best for those homeowners who are worried about the impact made by interest rolling up on their line. With these products, there are monthly interest payment fixed at the outset of the loan. Homeowners are able to release anywhere from £10,000 to £750,000 with the potential for approval on loans up to £1 million, so please contact the Equity Release team on FREEPHONE 0800 678 5159 for a personalised Interest-Only Retirement Advantage Key Facts Quotation.
Homeowners are able to choose to pay anywhere between 50% to 100% of the interest that accrues on their loan. They can select this for a time period from 5 years to the lifetime of the loan. The interest payment is directly debited and applied on the first business day of each month. Homeowners also have the flexibility to stop interest payments and revert back to a traditional roll-up mortgage scheme should their finances, or circumstances dictate
The main advantage of the Retirement Advantage Interest Select plans is the fact there are no affordability checks. Following inception of the plan and commencement of regular payments, the homeowner can actually choose to have their payments stopped. A point to note though is that if this option is selected, payments cannot be restarted. Finally, the payment term and payment amount are fixed at the outset of the loan.
The Interest Select Options Range
There are two Interest Select products offered. Both the Interest Select Gold and Interest Select Platinum have fixed monthly interest rates, with the Platinum always being the higher of the two, due to the increased maximum loans this plan offers the consumer.
Some of the key features offered with both the Retirement Advantage Interest Select products are the following:
Downsizing protection: This feature is available with any quotations generated. After 5 years, the homeowner can choose to repay their loan and not incur an early repayment charge if they are selling their home or moving to a different property
Early repayment waiver: Homeowners have the option to repay their lifetime mortgage within 3 years of the date that the first borrower enters long term care or passes away, without paying an early repayment charge.
Cashback: Cash back of £1,000 is available for any homeowner who takes a release of equity which is more than £40,000. The cashback is not added to their loan balance and does not have to repaid.
Cash reserve facility: While homeowners can apply for more borrowing at any time following the outset of their loan, the cash reserve facility can also be added to the mortgage right at the outset. This facility enables the homeowner to draw upon unused cash left following the initial tranche of monies that were taken. This can be taken in as smaller amounts as £2,000 a time whenever needed in the future & without any future admin charges.
Inheritance Guarantee: This feature is free of charge to the homeowner and allows them to put aside a portion of inheritance for loved ones.
Fixed early repayment charges: All of the Interest Select Options offer fixed early repayment charges that do not ever exceed 5%. For years 0-5, the early repayment charge is 5%. For years 5-8, the charge is 3% and there is no charge for years 9 and on.
The Retirement Advantage Interest Select Options range provides homeowners with the ability to control the future balance of their equity release mortgage and therefore facilitate an inheritance for the beneficiaries. Dependent upon the initial lump sum required will determine whether the Gold or Platinum plan is selected. The Gold will offer the lowest equity release interest rate of the two, but also the lowest maximum loan. Therefore, the choice will depend upon the need of the homeowner.
The latest Retirement Interest Select interest rates can be found in our Interest Only Comparison table, which has further details of all their Interest-Only lifetime mortgage plans.