Lifetime mortgage specialist Stonehaven has increased the maximum loan it will advance to borrowers to £4 million and will now lend against properties worth up to £10 million.
It said it made the move in response to growing demand from asset-rich older homeowners who want to stay in their homes but benefit from soaring house price growth.
The higher threshold has been developed in response to requests from financial advisers to provide a lifetime mortgage solution that will cater for higher asset rich individuals, for example, those wanting to manage their own inheritance tax planning or leave a legacy to children today, and to help people facing interest-only mortgage worries.
Stonehaven is also lifting the geographical constraints, offering the new standard value thresholds right across the country – and not just in London.
Until now the maximum loan amount offered by Stonehaven was £750,000 in London and South East and £500,000 elsewhere. The maximum property value was £4 million in London and the South East and £1 million elsewhere.
Alice Watson, product and communications manager, Stonehaven said: “The fact is that lifetime mortgages are fast becoming a more mainstream and popular product with growing need from more wealthy borrowers. Not everyone wants to downsize, and offering larger loans means our customers can remain in their home and have greater peace of mind whilst protecting or managing their future legacy.”
“In many circumstances, the family pays the interest to avoid the impact of interest roll-up, which is a sensible solution for older homeowners who would like to enjoy their remaining years and maintain the family home. At a time when other lenders are pulling back, we are very pleased to be driving forward further innovation.”