The Stonehaven product range, the Voluntary Select Options, allows homeowners to release lump sums of up to £4 million (dependant on the borrowers age and property value). The product allows flexible contributions which can be paid in unlimited instalments during the year and and has been introduced in response to high demand from clients who wish to pay off all of their loan rather than only servicing the interest.
Each year, lifetime mortgage holders who take out the Voluntary Select Product can pay back up to a maximum of 10% of the initial loan amount without paying any early repayment charges. The minimum payment is £50 and unlimited and flexible payments can be made throughout the term without the pressure of having to make regular monthly payments, giving older borrowers more control of their monthly budget.
There are two versions of the product: the Voluntary Select Lite and Voluntary Select, the difference between them being the amount of equity which can be released and the interest rate charged.
Alice Watson, Product and Communications manager, 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. The extra flexibility of the Voluntary Select Option means that there is no penalty for missing a payment and borrowers do not need to go through the normal mortgage affordability checks.
“Without the worry of the ‘monthly payment pressure’, borrowers can choose to make one payment or one hundred, skip a year or even more if they wish but also have the flexibility to make payments as, when and if it suits them.”
