Stonehaven has become the latest provider to suspend equityrelease lending.
Money Marketing revealed Prudential’s decision to pull out of the market in November. This followed Northern Rock, Saffron Building Society, Coventry Building Society and Retirement Plus which all previously suspended lending while In Retirement Services went into administration last year.
Following Pru’s exit in November, Stonehaven was one of the remaining providers, including Aviva, LV= and Just Retirement, to stress its commitment to the sector.
At the time, Stonehaven chief executive Jayne Almond said: “We are backed by a major bank which enables us to fund new lending.”
But in a statement this week, Stonehaven says: “All new lending is suspended temporarily. We will continue to honour applications received in the next four weeks and have extended our completion deadline to six months.
“Our existing lifetime mortgage customers will not be affected by this decision. Stonehaven remains committed to this market and hopes to return when the funding market improves.”