Stonehaven storms equity release market with Interest Select

Stonehaven storms equity release market with Interest Select

Equity release provider, Stonehaven, has launched, Interest Select, which it claims is an innovation in the lifetime mortgage market.

The new product allows customers to choose the amount of interest they pay each month.

The option has been introduced because Stonehaven believes many homeowners who are interested in equity release become anxious at the idea of the size of their loan increasing over time.

With Interest Select, some or all of the interest on an equity release loan can be paid each month.

According to the firm, paying even a modest amount each month can reduce the size of the debt considerably.

For example on a £40,000 loan a monthly payment of £30 over 25 years could reduce the amount owed over the period by £21,000.

Interest rates start at 6.08% and homeowners who cannot afford to keep up interest payments do not face repossession, instead the loan will revert to a roll-up plan.

Stonehaven’s chief executive, Jayne Almond, explains: “The Interest Select product reflects the needs of our customers who are seeking to take a more hands on approach to managing the interest on their lifetime mortgages.”

She also believes this type of loan provides a “level of flexibility that current economic conditions demand”.

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