The new fixed early repayment charges (ERCs) replace the existing variable charges, and apply to the whole Stonehaven range, including Voluntary Select and Interest Select. This means Stonehaven are the only Lender in the market to offer clients fixed ERCs on an interest servicing loan.
These changes have been introduced to bring certainty to your clients, and offer them real peace of mind.
The new fixed ERCs are:
• Years 0-5 of the lifetime mortgage: 5% of the initial loan amount
• Years 6-8: 3% of the initial loan amount
• Years 9+: no charge
If a partial repayment is made, the ERC is calculated in the same way as above but is based on the amount that they repay.
From today, all new KFIs will have fixed ERCs.
Cash Reserve Facility
The cash reserve facility is available across the whole Stonehaven range. They are the only Lender which will allow your clients to service the interest on a monthly basis on any withdrawals, alongside their initial advance.
If a client would like to add this product feature to their lifetime mortgage, the monthly interest rate is increased by 0.2%.
The minimum withdrawal is £2,000.
Interest Select clients can choose to service the interest on withdrawals from their cash reserve facility, subject to affordability and lending criteria when the withdrawal is requested.
For clients with Voluntary Select products, any withdrawals will include a 10% annual repayment allowance.
Call us now on 01204 884545 for more information on Equity Release Plans