Products & costs
Interest Select Options
Unlike our other Lifetime Mortgages where no monthly payments are made, with this option you can choose to pay some, or all, of the interest charged each month, for a period of your choice. The minimum amount of interest that you can pay each month is £25 and the maximum is the whole of the interest.
The differences between the Interest Select options are the maximum amount that you can borrow and the interest rate that you will pay.
If you are selecting to pay part of the interest, then a two part loan will be set up for you. If you are paying all of the interest, then only the first part will be relevant.
1. Interest payment part:
The first part of the loan is the one that you have selected to pay the interest on. The interest on this part is charged at a fixed rate for the period you are making the payments.
At the end of your chosen payment period, you stop making the interest payments and the interest is then added to the loan at a rate which is agreed at the start of the loan. This means that there are no hidden surprises.
If, for any reason, your circumstances change and you wish to stop making the payments earlier than expected, then Stonehaven can arrange this, but this may affect the interest rate charged. Please talk to your financial adviser who will be able to help you to understand this further.
2. Interest roll-up part:
This part will be set up only if you are not paying all of the interest. The interest for this part of the loan will be calculated at the fixed rate agreed at the outset and added to the loan each month for the life of the loan.
To find out the maximum that you can borrow, go to our Equity Release Calculator where you can put in the age of the younger borrower and what you think your house is worth.
Free Protected Equity option
With all Stonehaven Lifetime Mortgages you can choose to protect a percentage of the eventual sale value of your home. This means that the percentage you choose to protect is guaranteed to be available to you or your beneficiaries in the future.
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