The firm has refused to confirm the names of its partners, but has revealed details of its product range. This includes a lump sum and lump sum plus; regular cash release; flexible cash release; interest-only, and a ‘build-your-own’ product.
The firm is hailing the build-your-own product as particularly innovative in the equity release market, as it allows brokers to create bespoke products for their clients by combining a number of the product options. It is also offering an additional protected equity option, which offers clients the chance to protect a percentage of the eventual sale of their home.
The fixed monthly interest rates on the products range from 6.02 per cent on the lump sum, 6.49 per cent on the lump sum plus and 6.02 per cent on the regular cash release.
Commenting on the first phase of the launch, Georgina Smith, marketing manager at Stonehaven, said: “We have chosen six intermediary partners to launch the product through to ensure the proposition works and runs smoothly. Once we are certain of the success, we will look at the second stage of the launch, which will roll the product out further.”
Dean Mirfin, business development manager at Key Retirement Solutions, said the long-awaited arrival of Stonehaven showed some welcome product innovation in the market, but said the offering lacked a competitive edge. He said: “Looking at interest rates alone, this is potentially where the weakness lies. On a rate-for-rate basis, which is not how advisers should make their decisions, there are other providers offering more competitive products.
“The flexibility offered in building your own product is certainly something new. However, this could make an already complex market even more complicated. While it is offering a good mix, whether it takes the equity release sector to a new level of sophistication remains to be seen.”
