Recently, major banks have started to withdraw their equity release programmes for lifetime mortgages. Though this has not affected existing customers, people over the age of 65 who are looking to release equity from their property will no longer be able to turn to Halifax or Prudential for this kind of product. Instead, they will need to look at Stonehaven Interest Only Lifetime Mortgage plans and others on the market.
Fortunately, there are other established companies on the market which offer similar products to consumers. The Stonehaven Interest Only Lifetime Mortgage is one such product which can provide eligible consumers the equity release options they are looking for. Not only newcomers can utilize this scheme but also existing equity release owners can switch to this plan for a fee, which can researched here.
Equity release is an excellent way for those who have already paid off the mortgage on their property to recover some of the value of that asset to put to use somewhere else. It acts like a mortgage, but rather than paying off the debt, the customer continues to pay the interest until the asset is passed onward.
The idea is that when the asset changes hands, the value of the debt is then recovered. If the home is sold, then this is a great time to recover the equity. If it is passed on to the next generation, then a more traditional mortgage can be raised to finance the debt.
Equity release is an excellent way for people who have retired to ensure they maintain a good lifestyle. While many major banks have departed from this product, there are companies who have established excellent products who are happy to provide a great service.
Stonehaven interest only lifetime mortgage is one of those products from a great company available to you. You should be aware that equity release products do not work the same from all companies and there are different products to fit different situations.
The interest only lifetime mortgage is a way to guarantee some inheritance is left for your family after you pass on or need long term care. There reason for the guarantee is that you pay monthly interest. The principle balance is not repaid until death or a move to a new place; however, the interest is not building up sucking away the equity you try to leave for your family.
For example if you have a home valued at £250,000 and you take 44% of the equity out, you have the other 56% of the home with equity in it. You pay the interest so there is nothing adding to the 44% you took out. When the home is sold your family gets the 54% equity left in the home minus any fees that may be outstanding. Since you paid interest Stonehaven has gained money from the equity release throughout the life of the loan.
You may have a situation in which you cannot pay interest. For individuals without income, but someone who wishes to protect their home other lifetime mortgages can be taken out. You will want to take a lower sum and consider the drawdown option. Drawdown lifetime mortgages allow you to take only what you need to use and pay the interest and balance back after death or with the sale of the home. Unless the market changes reducing the value of your home there is equity left for an inheritance.
Home reversion does not keep the home, but it does not require a repayment or any interest build up. You actually sell a part of the home. For many this is disconcerting because they want a chance to keep the home for their family. On the other hand if you have no family or you wish to leave cash instead, then selling your home without any debt left at the end of your life can be the best option.
Before deciding on Stonehaven interest-only lifetime mortgage, search around for the different products. While it is harder and harder to find certain flexible plans and others have been removed from the market, you can still find something that will work for your lifestyle.
Seek advice from Stonehaven and an independent resource. Also speak with your family about the Stonehaven interest only lifetime mortgage to see if they agree with your decision. You may find your family is willing to help you enjoy your retirement and is able to help with that. They may also enjoy the idea of an equity release that can be paid back with a regular mortgage on the property allowing them to keep the home. You won’t know until you ask.
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National Equity Release Pension Conference, Bath Street, Bakewell, Derbyshire, DE45 1BX.
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