Stonehaven withdrew from new lending in March 2010 and said its focus would be on building up its business and relationships once more before potentially introducing new products.
Stonhaven’s products include lump sum deals, with interest rates from 6.13%, and its Interest Select option, allowing the borrower to pay back some or all of the interest each month, alongside a guaranteed equity option.
Georgina Smith, sales and marketing director of Stonehaven, said: “We have secured funding that can ensure we can come back to market with the products we want and for the long term.
“We have spent the last year improving our systems to make it easier for brokers to deal with us. The support from brokers to our return has been overwhelming. We hope this is the start of more providers coming back, because the more choice, the better.”
Simon Chalk, of LaterLiving, welcomed Stonehaven’s return and said he had been in recent discussions with three other equity release providers looking to re-enter the market.
Chalk said: “Stonehaven’s innovative product range breathes a breath of fresh air into the sector. Specialist planners now have much needed tools for those homeowners looking to enjoy the wealth of their home, but might otherwise have been deterred by the effect of rolled up interest eating into the equity.”
He added: “We are optimistic that we will end the year with more providers than we started out with, marking encouraging growth for equity release.”
