Stonehaven’s rates drop maintains its ranking as the most competitive provider on the open market, with the lowest interest rates for under 70 year olds, according to their figures. Rates now start from 6.06% for a 55-64 year old.
The new pricing structure comprises four age bands which better takes into account the length of time the borrower will remain a customer. Along with lower prices across its range of products, Stonehaven is retaining its existing free option to protect a portion of the equity in the property.
Stonehaven entered the market in August 2006 with a radical range of products tailored for the over 55 market, including the first fixed interest rate for over 55s and ‘build your own’ product structures, which allow IFAs and their clients to tailor an equity release solution from over 100 possible combinations.
Chief Executive Jayne Almond says: “By introducing tiered interest rates, it means we can now be more competitive amongst the younger age groups. We want to wake up homeowners, particularly those considering remortgaging as they approach retirement, to the opportunity and security that a fixed rate lifetime mortgage can provide over traditional mortgages. ”
“Innovation and flexibility are critical as the financial services industry navigates it way out of the credit crisis. The equity release sector needs to adapt in order to realise the immense market opportunities. We are confident we have the best products on the market and that we now have the best pricing in the market to support this.”
