Flexible Cash Release Options

Interest rates

  Age 55 - 69 Age 70 - 74 Age 75+
Flexible Cash Release Lite 6.01% 6.31% 6.41%
Flexible Cash Release 6.17% 6.57% 6.77%

The Flexible Cash Release option allows cash payments to be released when your client needs them.

Initial advance

Your client decides what amount they want to take as their initial cash advance (minimum £15,000).

Cash Reserve Facility

In addition to the initial cash advance, Stonehaven will set aside a Cash Reserve Facility for your client. At the beginning of the mortgage, this is set at the maximum your client is eligible to borrow (minus the initial advance) based on your client's age and property value.

The differences between the Flexible Cash Release Options are the maximum amount that your client can borrow and the interest rate that your client will pay. The maximum amount that your client can borrow will impact the amount available in your clients Cash Reserve Facility.

It is important to note that if your client is recommended our standard Flexible Cash Release product, your client will be getting a higher Cash Reserve Facility, but paying a higher interest rate than the Flexible Cash Release Lite product. Please ensure that your client requires a higher Cash Reserve Facility before proceeding with the case.

Guaranteed Cash Reserve Facility

Unlike most other lenders, we will guarantee a portion of the Cash Reserve Facility to provide your client with certainty in their planning. This guaranteed portion will be available in the future, no matter what happens to property prices or interest rates. At the beginning of the mortgage, this guarantee will be set at half of the total Cash Reserve Facility, subject to a maximum of half the initial cash advance.

Further withdrawals from the Cash Reserve Facility

Your client can apply to make further withdrawals at any time. Each time your client applies to withdraw against the Cash Reserve Facility, the total Cash Reserve available will be reviewed and recalculated to ensure that it reflects any changes in:

  1. Your client's age. This means the LTV available will increase each year
  2. Your client's outstanding balance
  3. Stonehaven's lending criteria

In normal circumstances we will also use the original house value established at the time the mortgage was set up. If your client feels that their house value has increased and they want to increase the value of the cash reserve, they can pay for a new house valuation. In extreme circumstances, Stonehaven may also ask for a valuation.

The interest rate on each cash advance is fixed each time your client makes a withdrawal, based on our prevailing rates at the time of withdrawal. Your client will be provided with an Offer letter, confirming the interest rate and APR and your client will need to confirm that they accept the terms.

Each time your client withdraws cash, Stonehaven will then recalculate the revised value of the total Cash Reserve Facility and the revised value of the guaranteed portion which will be available in the future. Again, the guaranteed portion will be set at half the remaining Cash Reserve Facility, subject to a maximum of half the total advances made to your client. These details will be also be confirmed to your client in the Offer letter mentioned above.

Interest is never charged on the Cash Reserve Facility, but just on the actual amount borrowed. As with the other options, no monthly payments need to be made, and the loan plus accrued interest and charges is repaid when the property is sold.

Loan Limits Flexible Cash Release Lite
Age 555657585960616263646566676869707172
Max LTV available (%) 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Age 737475767778798081828384858687888990
Max LTV available (%) 30 31 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32
Loan Limits Flexible Cash Release
Age 555657585960616263646566676869707172
Max LTV available (%) 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Age 737475767778798081828384858687888990
Max LTV available (%) 33 34 35 35 35 35 35 35 35 35 35 35 35 35 35 35 35 35

Exceptions:

The LTV may be adjusted in certain circumstances, such as sheltered accommodation or non-standard construction types.

Go to our Maximum Loan Calculator to find the maximum amount your client can borrow and the interest rate they will be charged.

Other information

Applicants

1. Minimum age (for the younger borrower)

55

2. Maximum age (for the younger borrower)

90

3. Status

Available on both single or joint-life basis. Joint borrowers do not need to be married and may be of the same sex. If the property is in joint names then both owners must apply for the loan.

Property

4. Location

England or Wales

5. Minimum property value

£70,000

6. Maximum property value

Maximum value of £2m in Greater London & SE, or £1m elsewhere (may be exceptions)

7. Type

See our Lending Policy.

Cash advances

8. Minimum initial advance

£15,000

9. Maximum initial advance

£500,000

10. Minimum further drawdown from Reserve Facility

£2,000 (or the remaining balance in the Cash Reserve Facility)

11. Further cash advance frequency

When required. Please note that your client will need to wait 8 weeks after completion before they can make their first drawdown

How to make a drawdown

If your client has a Cash Reserve Facility and wants to withdraw cash, they can apply directly to Stonehaven at any point. Please send requests to:
Stonehaven
Pioneer House
Ulster Science & Technology Park
Branch Road
Londonderry
BT48OSP

12. Charges

See'Our Costs'

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 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 the above scenario may impact your client's beneficiaries and the implications should be explained to your client.