Stonehaven cut rates

Their Interest Select products enable borrowers to pay off interest each month, thereby preserving their property’s capital.

Georgina Smith, managing director of Stonehaven, said: “This generation of homeowners has benefited from the massive increase in house prices and are now seeking to cash in without having to downsize.

"New flexible products and competitive interest rates mean that borrowers can provide a protected legacy for their children, but also release some cash for themselves.”

The Interest Select product rate is now 6.03% monthly, or 6.20% annualised, while different rates for other products depend on the amount the customer can borrow.

The most popular reason for borrowers taking out lifetime mortgages is managing a mortgage shortfall.

The majority of Stonehaven’s customers choose to pay off at least a portion of the interest throughout the duration of the loan, saving them money in the long-run.

In a recent survey among advisers from Stonehaven, 94% said many of their clients were surprised at how flexible the products can be.