The product was designed in response to demand from customers for a product which allowed them to pay off their loan rather than just servicing the interest. The product does not have a fixed term and the youngest borrower must be 90 years or below.
Lump sums of up to £4m can be released and borrowers can repay up to 10% of the initial loan each year without paying any penalty.
Rates are available between 5.99% and 6.08% and loan-to-values range from 11% to 39%.
There are two versions of the product: the Voluntary Select Lite and Voluntary Select mortgage. The difference between them is the amount of equity which can be released and the interest rate charged.
Alice Watson (pictured), product and communications manager for Stonehaven, said: “This is an exciting proposition for older borrowers who want to retain control of their finances whilst having the choice to make contributions when it suits them. This will open up the lifetime mortgage market to older borrowers who are denied access to conventional mortgages.”
Watson said that without the worry of the a monthly payment borrowers could choose to make one payment or one hundred or skip a year if they wanted but also had the flexibility to make payments.