Stonehaven launches over-55s mortgage
The product range, ‘Voluntary Select Options’, allows homeowners to release lump sums of up to £4m depending on the borrower’s age and property value.
Every year mortgage holders can pay back up to 10% of the initial loan amount without incurring early repayment charges.
There are two versions of the product, the Voluntary Select Lite and Voluntary Select, with the difference being the interest rates charged and the amount of equity which can be released.
Alice Watson, product and communications manager at 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.”
The Voluntary Select Option offers interest rates between 5.99% to 6.08% while LTVs range from 11% to 39%.
Stonehaven is the only lifetime mortgage provider which lends against properties worth up to £10m.