Stonehaven in equity release return - others set to follow
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Stonehaven has returned to the equity release market a year after suspending new lending.
Money Marketing understands there are three other equity release lenders eyeing returns to the market.
The lender suspended new lending last March due to funding problems but said at the time the move was temporary.
Stonehaven were one of many providers which decided to pull out of the market, including Prudential, Northern Rock, Saffron Building Society Coventry Building Society and Retirement Plus.
The lender is launching four interest select products, which allow the borrower to decide how much interest they pay off each month and for how long, and two lump sum products.
LaterLiving equity release planner Simon Chalk (pictured) says: “We are optimistic that we will end the year with more providers than we started out with, marking encouraging growth for equity release.”
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Readers' comments (7)
Patrick McCarry | 4 Mar 2011 9:29 am
Good news all round and definitaly gives clients more choice. Lets see the others.!
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Paul Gabriel | 4 Mar 2011 10:00 am
Brilliant news, we should also see interest rates reduced for consumers and more options as competition in the equity release sector from new lenders continues throughout the year.
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Adam Smith | 4 Mar 2011 10:39 am
Brilliant news! So much better to burn your kids' inheritance than to live within your means...
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Norm d'Plume | 4 Mar 2011 11:54 am
This is yet another financial services accident waiting to happen.
A product levy will prevent us all having to dip our hands in our pockets when it does.
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Martyn Collins | 4 Mar 2011 1:20 pm
Come on Norm dplume....be a bit more positive!!. Equity release is the best financial planning tool in the world if you are out of dosh...you cant take it with you and if you are like my mum...the care homes will get it. I dont live in the Uk anymore BUT Stonehaven may encorage me to come back!
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wilfred | 4 Mar 2011 2:41 pm
I really wished that my mum could have had equity release whilst she was well and not have to sell the house and tip up the proceeds to the care home. It would not have bothered me about spending the inheritance.
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Ronnie | 9 Mar 2011 4:01 pm
I have searched the market and found no law or obligation to leave an inheritance to anybody.
These products need developed to apply to a wide range of older peole with cash flow needs and not just be "roll up" take the equity products. These are good products for the right client and the client is the final arbiter as to the products suitability for them, More interest payable, which protect the equity, products are needed to fill a large gap in the retirement product market.
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