Stonehaven has returned to the equity-release market after securing a new source of funding a year after it suspended new lending.
In March 2010, the com- pany suspended new lending temporarily due to problems in securing funding.
Stonehaven was one of several providers that decided to pull out of the market, including Prudential, Northern Rock, Saffron Building Society, Coventry Building Society and Retirement Plus.
Last week, Moneymarketing.co.uk revealed Stonehaven will offer four interest select products that allow borrowers to decide how much interest to pay off each month and for how long. It is also launching two lump-sum products.
Sales and marketing director Georgina Smith says: “We have returned to the market because we have got new funding and we only wanted to return to the market when that was the case.
“We wanted to return at a time when we could offer unique products, not more of the same. There is customer demand out there and we believe it will grow.”
Stonehaven refuses to disclose who is providing the new funding.
Equity Advice managing partner Stuart Wilson says: “This move is brilliant for two reasons. It sends a good message to the sector, showing more providers are coming back in and it is major step forward in terms of products.”
LaterLiving equity release planner Simon Chalk says: “Stonehaven was innovative and quickly became a favourite of serious financial planners who like niche products.”