Stonehaven has responded to growing demand from asset-rich older homeowners by lifting the maximum loan it will advance to borrowers to £4m and lending against properties worth up to £10m.
The new standard value thresholds will be offered right across the country; not just in London. Previously the maximum loan amount offered by Stonehaven was £750,000 in London and south east and £500,000 elsewhere. The maximum property value was previously £4m in London and the south east and £1m elsewhere.
The higher threshold has been developed in response to requests from financial advisers to provide a lifetime mortgage solution that will cater for those wanting to manage their own inheritance tax planning or leave a legacy to children today.
For older homeowners who no longer have a repayment vehicle in place and are facing restricted lending criteria from mainstream lenders, a lifetime mortgage can be used to release a cash lump sum to pay off the debt at the end of the mortgage term, the specialist firm explained.
Stonebridge claims it will now be the only UK-based equity release provider to permit monthly interest payments on larger loans.
Alice Watson, product and communications manager at Stonehaven, said: “The fact is that lifetime mortgages are fast becoming a more mainstream and popular product with growing need from more wealthy borrowers.
“In many circumstances, the family pays the interest to avoid the impact of interest roll-up, which is a sensible solution for older homeowners who would like to enjoy their remaining years and maintain the family home.
“At a time when other lenders are pulling back, we are very pleased to be driving forward further innovation.”
Lifetime mortgages are only available through financial advisers and Stonehaven suggested that the decision should be made in conjunction with family members.
