Practical Ideas for Using the Stonehaven Equity Release Interest Only Lifetime MortgageSeptember 25th, 2013
When it comes to retirement, even the best laid plans can fall somewhat short of your hopes and aspirations. You tried the savings route of PEP’s and ISA’s even the low cost endowment policies of the 80’s and 90’s, but still they weren’t enough to avail yourself of leaving a mortgage shortfall moving into retirement.
Taking a mortgage into retirement is not a bad move, however lenders are becoming particularly stubborn when these plans are coming up for renewal. This could be either on reaching retirement & a subsequent shortfall arises. By taking a mortgage into retirement ensure you always get independent, legal advice.
What are the next steps for advice on an interest only lifetime mortgage?
The problem is usually not the immediate, although it should be addressed as soon as possible. Most lenders are now reigning in their interest only mortgages in light of the recent overtures of the FSA (Financial Services Authority) & is tough stance towards these mortgage repayment types. They are insisting on lenders either fore-warning borrowers upon expiry, moving home or at additional borrowing stage that they need to convert onto a capital & repayment basis. For some this could be impossible as to repay such an amount over such a short period of time would be unaffordable & with many lenders remaining rigid in their defence then most people have just one alternative – which is to downsize.
However, before placing your house on the market, consider a possible alternative which could be a form of interest only lifetime mortgage offered by Stonehaven equity release. They effectively offer the over 55’s a light at the end of the tunnel with a unique & well thought out lifetime mortgage plan. Both FSA regulated and SHIP compliant, Stonehaven’s range of Interest Select plans are tailor-made for such people who can afford to carry on making monthly repayments & at the same time protect their inheritance.
The reason for that is that by paying off the interest each month, the balance will remain exactly the same. This is no roll-up type scheme, but one that is usually affordable due to good pension income is available.
Nevertheless, proof of income with this Stonehaven equity release deal is NOT required as they class the monthly payment as ‘contribution’ towards the monthly interest charged.
In fact, you have the choice of paying a reduced amount of the monthly premium if you so desire. This will mean that there will be a smaller element of roll-up, should limited monthly payments by paid. This can be particularly beneficial should affordability be limited, however you do have a fall back option within the scheme by being able to roll-over to non paying equity release schemes in the future if finances got too tight.