Stonehaven offers financial security to people approaching retirement or in retirement through interest-only mortgages which do not require any monthly repayments. Instead, the beneficial makes interest-only payments. The advantage of this is that the capital amount will never increase. It will remain the same. The disadvantage, however, is that at the end of the term, the entire capital amount has to be repaid. This can place families into huge debts resulting in them having to sell off their property to repay the debt.
Stonehaven offers a slight alternative to the interest-only deal with the interest select scheme which is an interest only home mortgage that allows home owners to choose how much of the debt they would like to repay on a monthly basis. This scheme is only directed to those who are capable of paying the minimum monthly repayments. For example, pensioners who have a pension scheme that covers their monthly living expense might be eligible for this policy. This is a more intelligent option that allows repayments.
The plans offer by Stonehaven are designed for a fixed term or to be lifetime. In certain circumstances, Stonehaven allows repayment. This would be if the borrower wants to repay the full amount borrowed before the end of the term or if the borrower wants to make partial repayments. In such cases, an early repayment charge is payable. The reason for this is that the mortgage amount, the interest rate and term is calculated based on the standard life expectancy. If the term is shortened, Stonehaven stands to lose. This is why the early repayment charge was implemented.
This charge is normally no more than 25% of the lump sum and the completion fee. The early repayment charge does not apply in situations where the property is sold and the mortgage is transferred to another property, where the beneficial is moving into long term care, or where the beneficial dies.
However, for many, the interest-only repayments on a monthly basis are more attractive and beneficial. Stonehaven allows interest repayments on lifetime mortgages to allow its client to have a fixed and sustainable income in their retirement years.