Life tends to be a bit harder financially for those who are aged over fifty-five. Based on the fact that they are nearing their retirement and may even be no longer a part of the active workforce, fewer opportunities are made available to them. This is especially true where loans and mortgages are concerned. It is very difficult for those who are over fifty-five to obtain a mortgage or similar finance that will need to stretch into their retirement. However, there is a new breed of financial companies such as Stonehaven who are working hard to change this.
The equity release plans offered by Stonehaven are all geared at helping those who are over fifty-five years old to release equity that is constrained within their property. The equity release process is quite simple to understand. When you own a property, it has a certain value to it. That value can literally turn into tax free cash, which you can spend to meet any need or want.
Many of the older population feel that their age is against them under many circumstances and that can be quite true. There are things that they want to do but cannot because they cannot obtain the finance assistance that they need to do so. Also, when they want to move from one home to the next, they may have difficulties obtaining the necessary finances to do so. But, with the range of equity release plans offered by Stonehaven, particularly the interest only lifetime mortgage range called the Interest Select Plans, they can potentially make all of their dreams and wishes come true.
A most attractive equity release plan offered by Stonehaven is the Interest Select Plan – Lite, which is an example of an interest only lifetime mortgage with a fixed interest rate of just 5.99%. The Interest Select Plan is an interest only lifetime mortgage, hence it will run for the remaining duration of one’s life and the interest charged will always remain the same.
The fact is that Stonehaven’s range of Interest Select Products can bridge any mortgage shortfall like a conventional mortgage would. It is also geared towards your current age nearing retirement making it easier to plan for some fun in life.
Hence, if looking to purchase a new house and need the funds to complete the purchase, you could apply for a Stonehaven equity release plan to bridge the shortfall in money. It therefore acts in exactly the same way as a residential mortgage – but this is for the over 55’s and runs throughout their retirement with NO proof of income necessary.
Many people think equity release is always completed on the house they are currently living in. This is quite correct; however, there are other instances when it can also be used to move up the property ladder.
If someone lives in an unencumbered property with no outstanding finance secured upon it and now wishes to buy a more expensive house, how could they achieve this goal? Simple. They apply for the Stonehaven equity release on the property they are buying to cover the amount they need to put towards the sales proceeds of their existing house. Both the equity release and the sale proceeds added together will give the sum of money to buy the new and more expensive property.
You do not have to enter into a complicated scheme like increasing your property size. You can also reduce your property size and keep the interest only mortgage with you. You downsize, have a lower value in the property, but money from the sale of the property you had can cover much of the mortgage, interest, and perhaps leave an inheritance. It all depends on your situation. You may find things work out best with a different type of release scheme than interest-only.
If is all dependent on the funds you have on a monthly basis. For some they do not have disposable income, which can take away some advantages through Stonehaven. Of course there are other options like drawdown lifetime mortgages that give you a sum to draw on when you require money.
If you wish to discuss further how equity release schemes can move you UP the property ladder in retirement call 0800 678 5159 and talk to independent equity release advisers who specialise in the range of Stonehaven products. It is often best to speak with an adviser to make certain you understand what you are getting into and all the ins and outs.