People who are over the age of sixty-five and who have applied for a mortgage have been rejected in the past; however, retirement mortgages are becoming very popular today. The main reasons for this is that many pensioners still receive a significant income during their retirement years, many pensioners are now planning better for their retirement, and many pensioners still have a long term mortgage and are looking for a way to obtain a better mortgage deal. This is where equity release mortgages provided by Stonehaven come into play. If pensioners want to increase their income during retirement, they can do so using the equity release which allows them to use a value of their property to receive a large amount of cash or monthly installments.

There are two main types of equity release available from Stonehaven for pensioners – the home reversion plan and the lifetime mortgages. The home reversion plan allows home owners to sell a part of their homes for a lump sum of cash in return. So when they die, they property is sold, and the lender gets back the agreed proportion regardless of whether the value of the property has increased or decreased during the years.

The lifetime mortgages available to pensioners allow them to take out a loan on their property so that they can generate cash to use for other purposes. The interest of this loan is paid at death though the sale of the property. (more...)

If you already have a mortgage taken out with Halifax before you retire, the company will take into consideration how you will afford the mortgage once you retire. All mortgages agreed to by Halifax must now end before you turn 75. However, the Halifax retirement mortgages under the Halifax Retirement Home Plan have been withdrawn as of 17 August 2011. This means that Halifax now only provides interest only mortgages under their traditional mortgage book.

The Halifax Retirement Home Plan was a service provided for Halifax retirement mortgages schemes. This product was a form of lifetime mortgage specifically geared to retired people with sufficient pensionable income. Customers who have an existing Halifax Retirement Home Plan are still able to move homes under these Halifax retirement mortgages and are still able to borrow additional money if they meet the designated criteria.

As an alternative to the previous Halifax Retirement Home Plan, new customers can choose to take out Halifax retirement mortgages in the form of lifetime mortgage schemes with alternative lenders, which are very similar to the Halifax Retirement Home Plan. Such specialist lenders are sure to emerge on the back of the success of the Halifax's pensioner mortgage (more...)

An interest-only mortgage is one that allows borrowers to make an interest-only payment in the first few years of the loan duration instead of paying the interest and the principal payment. The two most common interest-only mortgages are over terms of either twenty five year loan or a forty year loan.

The loan is limited to the interest only element, thus no capital is actually paid off the mortgage. However, since the recent FSA crackdown on these forms of mortgages, most lenders now insist on a repayment vehicle such as an ISA (Individual Savings Account), pension or Low Cost Endowment policy. One of the advantages of an interest only mortgage is that it can be available to pensioners; however, the deciding factor will be if they are able to pay the monthly interest. Many lenders find it risky to offer mortgages to those who are 60+, but there are many pensioners who are in need of a mortgage into retirement. Life doesn't stop at retirement age. In fact for many life becomes more expensive as more leisure time & corresponding cost arises.

Interest only mortgages can still be available to pensioners that are up to 80 years in age, but need to be less than age 70 upon application. This can be a major option for pensioners who need financial help with home improvements as well as other financial matters. (more...)

An interest-only mortgage allows you to make interest-only payments to the lender until the end of the duration of the mortgage. The capital amount that you borrowed is only repaid at the end of the term. In many cases, the property is sold to repay the capital amount. In other cases, it is repaid using savings or by the children of the beneficial. An interest-only lifetime mortgage is no different from an interest-only mortgage except that there is no term.

Companies that offers interest-only lifetime loans are not difficult to find. They offer a large variety of loan programs to buy or refinance a home. There are many different types of lenders who will provide interest-only lifetime loans depending on various factors. There are the conventional lenders, there are the online lenders, there are the mortgage brokers and there are so many others who can provide you with an interest-only lifetime mortgage. It is up to you to choose the one that will offer you the best deal with competent customer service.

In order to find companies that offer interest-only lifetime mortgages, you need to shop broadly and as you become fully aware of the pros and cons of each lender, you narrow your focus. Make sure that you are fully aware of the deals each company offers, the interest rates and the interest only mortgage calculator that they use to calculate the amount you are allowed to borrow. (more...)

One of the most innovative equity release lender is Stonehaven which uses a variety of finance houses to make the release of equity possible with its Interest Select plan. The Interest Select plan which is also known as the self-certification or self-cert mortgage provides an interest mortgage with a lifetime duration. This plan is known as the self-certification plan because it does not require the verification of income because it results in interest-only payments which can be seen as contributions.

The advantage of the self cert mortgages for the retired is that it allows pensioners to choose the amount of interest they wish to pay on a monthly basis. The minimum amount that they can pay per month is £25 while the maximum amount would be the total interest amount per month. This allows the retired to fit the monthly interest-only payments into their budgets.

Another advantage of this plan is that borrowers can have peace of mind knowing that the interest rate will be the same for the duration of the loan. It does not matter what the external interest rates are, the interest rate of the interest only mortgage will never change.The interest rate of the self cert mortgage normally starts at 6.13% and as mentioned before, it is fixed. (more...)

Equity release products have become increasingly popular in the recent years especially for the retired. Two of the most common mortgages that are being applied for are the lifetime mortgages and the home reversion schemes. The fact is that most home owners in retirement realizes that they have a lot of money tied up in their properties; therefore, in order to have a much more comfortable retirement years, they decided to release some of that tied up money through equity release schemes.

The uk interest only mortgage is an example of a lifetime mortgage in which a person borrows and only pays back the borrowed amount at death. The home reversion scheme is where a person sells a certain amount of his property to the mortgage provider for either a lump sum amount or monthly payments. So by now you might be wondering how these people are protected and are there regulations for these matters.

The answer is yes. The Financial Services Authority is the governing body that regulates all lifetime mortgages as well as home reversion schemes. This body makes sure that consumers who are looking for a way to provide sustainable income in retirement are protected. (more...)

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. (more...)

Many people like to choose interest only mortgage deals because it helps them to keep a large part of their income, as they just need to shell out the interest portion of their loan. As compared to the payments that need to be made for the capital portion of the loans, the repayment amounts are much higher than that of interest payments and hence interest only mortgage deals were extremely popular.

With interest only mortgage deals, one has a lot of scope to increase their monthly savings and in the long run, these earnings can add up to a large amount. Generally people tend to create a separate account for repaying the capital portion of the loan, so that they can easily pay off the entire amount at the end of loan tenure.

The amount of flexibility that is provided by interest only mortgage deals often influences a lot of consumers to adopt this debt instrument. People, who feel that their income amount is not sufficient to pay off the capital part of the monthly loan amount, can find a lot of relief with interest only loans and hence it is not surprising to find so many takers for these kinds of loans. (more...)

The fact is that there are many retired people who live their lives with insufficient pension. Due to the fact that they have a minimum amount of savings, they are unable to fulfill their realistic likelihoods. This can be really annoying and frustrating for a retired person. They can be more stressed out if they have funds tied up and they fail to produce greater benefits in their pocket. A lifetime mortgage can be the solution. It is a way to release some of the capital that is tied up in the property of a retired person. An equity release mortgage is one of the best ways to borrow without having to repay immediately.

For many people, a lifetime mortgage is the best way to release equity from their property by obtaining a loan from an equity release provider. Basically, that money is released from the property to help them to improve their standard and quality of life. The funds released from the mortgage may make it possible for a retired person to afford a brand new motor vehicle, to make home improvements, to go on a vacation of a lifetime or to make house alterations. The released funds can also support the children of the retire person with her or his first house. The needs and demands for the released funds can be limitless.

The amount that is borrowed is always secured against the property. The repayment is made when the property is sold. This is normally when the owner goes into long term care or when he or she dies. (more...)