Specialist equity release provider Stonehaven has launched a new type of lifetime mortgage.
The Interest Select allows customers to choose the amount of interest they pay each month on their lifetime mortgage.
Equity release has become increasingly popular over recent years as older homeowners struggle with being property rich and cash poor.
But Stonehaven equity release has found that many homeowners who are interested in equity release are worried about the size of their loan increasing over time.
In response, Stonehaven has decided to introduce its Interest Select life time mortgage which allows homeowners to pay some or all of the interest each month.
Stonehaven claims that even paying a modest amount each month can reduce the size of the loan considerably, for example on a £40,000 loan a monthly payment of £30 over 25 years could reduce the eventual amount owed by £21,000.
"The Interest Select product reflects the needs of our customers who are seeking to take a more hands on approach to managing the interest on their lifetime mortgages," explained Jayne Almond, Chief Executive of Stonehaven.
"Interest Select provides a level of flexibility that current economic conditions demand and it is the only product on the market that allows mortgagees to actively control the amount of interest accrued to their final lump sum.
"Innovation and adaptability are vital if the equity release market is to truly help consumers during what will be a difficult financial year. We feel that Stonehaven's considerable range of solutions meets the demands of what is a rapidly evolving sector."
To find out more about Stonehaven equity release and other equity release plans, fill in our no obligation equity release enquiry form .
You will be put in touch with an independent equity release adviser who will be able to talk you through your options and find the plan to suit you.
© Fair InvestmentCompany Ltd