The Halifax Retirement Home Plan allowed those over 65 years to borrow a maximum of 75% of the value of their home. They were required to only pay the interest. The amount borrowed was repaid when the property was sold after their death. Halifax however stopped this plan due to the fact that it was just a small percentage of its intermediary business. Since Halifax withdrew their Retirement Home Plan, a massive void has been created for pensioners who are seeking interest only lifetime mortgages. Some pensioners are still searching online for the Halifax Retirement Home Plan. There is now an answer in Stonehaven equity release plans.
Stonehaven equity release plans have been able to fill this void. The equity release schemes offered by Stonehaven are very similar to the Halifax Retirement Home Plan; however, these plans are available to those who are over 55 years. Stonehaven is currently one of the most popular equity release providers due to the benefits it provides to home owners. The amount they lend on interest only is solely based on age and property value. NO income requirement is made; therefore, it could be classed as a self cert mortgage, rare in today’s times.
First of all, Stonehaven guarantees no negative equity. This means that your property will be sold for the best price obtainable to repay the initial loan amount. However, if the amount obtained for the property is not sufficient to repay the initial loan amount and the solicitor’s fee, Stonehaven will not ask your beneficiaries to pay the extra costs. You are therefore guaranteed to never have to pay more than the value of your property, a major relief for your beneficiaries.
Stonehaven also guarantees portability which means that if you move to a new property which meets the requirements of Stonehaven equity release plans, your existing equity release plan with the same terms and conditions can be transferred to your new property. If your new property is lower in value compared to your previous property, you will have to repay a portion of the loan. However, if your new property is higher in value than your previous property, you can choose to increase your loan.
Other benefits the equity release schemes of Stonehaven are:
• One fixed interest rate for the entire duration of the loan
• Repayment is only required after your death or after you have moved into long-term care
• You retain full ownership of your property until it is sold
Stonehaven is not the only mortgage provider for equity release schemes. You have a variety of other options; however, they may not offer these same benefits. The fact that they have an interest only mortgage where other companies may not makes them an interesting party in the lifetime mortgage industry.
Stonehaven certainly filled a void in the interest only sphere. In most cases when you come across an interest only mortgage you have to pay the interest back with disposable income. It means unless you can prove you have extra income that you can use towards the mortgage you may be denied for the plan.
In the event you find some worrying disadvantages with the Stonehaven plan or you do not like the interest only option, you have other plans to choose from. Stonehaven equity release plans provide you a myriad of choices from standard equity releases for retirees to drawdown plans. With these options you either take a lump sum paying no interest until the end of your life or removal to a care facility, or you take money as needed with the same benefit of paying after death with the sale of your home or when you move out to a long term care location.
As you shop around, compare, and search for the plan that seems most helpful to your situation, consider the inheritance you will leave for families. Your family may want to keep the family home or they may appreciate cash upon your demise. If your family is really attached to your home they may not appreciate you selling it for a retirement mortgage like the Stonehaven equity release plans in discussion here. They may want to move in with you or supply you with funds during your retirement to ensure your home remains in the family.
These options might not be open to you and your family. It is still a good idea to discuss what you might do financially to ensure they understand the potential burden they will face. Speak with a financial adviser at Stonehaven too as a way of finding out more about Stonehaven equity release plans.