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Equity Release

Stonehaven launches repayment over-55s lifetime mortgage

Samantha Partington
Written By:
Samantha Partington
Posted:
Updated:
13/01/2015

Equity release lender Stonehaven has launched an over-55s mortgage to allow borrowers to repay their mortgage in full to safeguard equity and reduce the cost of the overall loan.

The product was designed in response to demand from customers for a product which allowed them to pay off their loan rather than just servicing the interest.

Lump sums of up to £4m can be released and borrowers can repay up to 10% of the initial loan each year without paying any penalty.

Rates are available between 5.99% and 6.08% and loan-to-values range from 11% to 39%.

There are two versions of the product: the Voluntary Select Lite and Voluntary Select mortgage. The difference between them is the amount of equity which can be released and the interest rate charged.

Alice Watson, product and communications manager for Stonehaven, said: “This is an exciting proposition for older borrowers who want to retain control of their finances whilst having the choice to make contributions when it suits them. This will open up the lifetime mortgage market to older borrowers who are denied access to conventional mortgages.”

Watson said that without the worry of the a monthly payment borrowers could choose to make one payment or one hundred or skip a year if they wanted but also had the flexibility to make payments.

 


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