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Stonehaven currently offers some of the most innovative and flexible products in the interest only lifetime mortgage sector. At the moment, Stonehaven Interest Select happens to be one of the most popular lifetime mortgages, not least because of its flexible three tiered structure.

The Stonehaven Interest Select plan has proven to be a good alternative for the much sought after, but recently withdrawn Halifax Retirement Home Plan. Stonehaven offer their interest only lifetime mortgage in three variations in terms of the interest rate – Interest Select Lite, Interest Select Plus and Interest Select Max designed to suit people with varying priorities and needs. The minimum amount you can release with this Stonehaven equity release plan is £10,000 with a minimum property valuation of £70,000. The product is available to clients 55 years and over, upto a maximum age of 90 for the youngest applicant. The flexibility of the plan lies in the fact that while the minimum monthly repayment is £25, you can also make full interest repayments and keep your balance level.

You can choose the term of repayment and the amount to be repaid each month at the beginning of the mortgage; however, if you do not wish to continue making monthly repayments thereafter, the mortgage can be easily converted from an interest only lifetime mortgage to an interest accumulation mortgage. The resulting Stonehaven roll-up lifetime mortgage scheme then will have a 0.2% increase in its rate thereafter. However, should the date for this switch be pre-determined, then NO increase in interest rate will occur.

Depending on how much interest you choose to repay each month, the mortgage will consist of the interest payment part and the interest roll up part. The interest rates for these components are pre agreed and remain fixed providing all the loan terms are met. Stonehaven’s lifetime mortgages can be repaid in full or part at any time, but of course since they are meant to be lifetime mortgages, the company may charge an early repayment penalty/charge (ERC) if repaid within a certain period.

Currently Stonehaven charges ERCs based on the long term interest rates on the mortgage which are linked to the FTSE UK 20 year gilt yield index. They are one of the only companies that will actually specify the starting point of the gilt index on the Key Facts Illustration. From there you can monitor the movement in the gilt yield index by checking the FT or other quality tabloid.

The maximum amount you can release with Stonehaven Interest Select lifetime mortgages depends on different factors including your age, property valuation etc. You can use Stonehaven’s Maximum Release Calculator, which is a handy and quick way to get a fairly accurate idea of how much you could potentially release with this product. Find the calculator here  – http://www.stonehaven-uk.com/adviser-toolbox/max-loan-calculator.

A simple tool that evaluates how much you can raise based on your age & property value. It will then provide a list of the various Stonehaven products with their interest corresponding interest rates, product name and the maximum lump sum available on that particular tier. Stonehaven Interest Select lifetime mortgages have been at the forefront of making the lifetime mortgages sector more innovative and flexible, and offer a wider range of options to offer customers full control over their mortgage.