Common product features

We offer a range of products which allows your client to tailor how and when they release their cash from their home. All our products are lifetime mortgages. There are features that are common to all products and some that are additional. The following section provides details of the common features.

No Negative Equity Guarantee

We guarantee that when the property is sold for the best price reasonably obtainable, if the proceeds after solicitors and estate agents fees are not enough to pay the amount owed to Stonehaven, we will not ask your client or their beneficiaries to pay the shortfall.

Guaranteed portability

If your client moves home to a new property that is suitable to Stonehaven, they can move the mortgage under the same terms and conditions.

If this property is of a lower value than the old property, they may have to repay a portion of the loan at this time so that the ratio of the balance outstanding to the property's value remains the same, before and after the move. If your client is a Regular Cash Release customer then this may reduce or cancel any further Regular Cash payments that they are due. Any Cash Reserve Facility may also be reduced, including the guaranteed portion. In all these circumstances, Early Repayment Charges will not be applied.

If the new property has a higher value than the old one, it may be possible to increase the loan, or the Cash Reserve Facility. The increased part of the loan will be subject to the terms and conditions applicable at that time. The new property will be subject to valuation by Stonehaven and your client will be responsible for the valuation costs.

Fixed interest rate

The rate of interest is fixed for the duration of the loan (further advances are at fixed rates, but these can be different from the main loan).

Repayment of the loan

The loan and all outstanding interest and charges are usually repaid from the sale of your client's home when your client dies or moves into long-term care (or when the last surviving borrower dies or moves into long-term care).

Retain full ownership of the home

Your client retains full ownership of their home until it is sold.

Protected Equity Option

With all Stonehaven lifetime mortgages your client can choose to protect a percentage of the eventual sale value of their home. The No Negative Equity Guarantee and the amount that Stonehaven will lend are based on the value of the unprotected portion of the property.

If, in the future, your client wants to reduce the amount of equity protected in order to apply for further borrowing, then the following should happen:

  • If your client originally took out a lump sum and protected some of their equity, they must apply for additional borrowing through their financial adviser. Stonehaven will not charge for reducing the protected equity option, however the normal charges and conditions associated with additional borrowing will apply.
  • If your client has set up a Cash Reserve Facility and protected some of their equity they can apply directly to Stonehaven. Stonehaven will not charge for reducing the protected equity and the value of the cash reserve will be recalculated based on the new unprotected value of the property. The normal charges associated with making a drawdown from the cash reserve will apply.

Please note that both scenarios may impact your client's beneficiaries and the implications should be explained to your client.