Stonehaven, Equity Release Provider Suspends New Lending

Stonehaven, Equity Release Provider has posted a message on its website saying that all new lending has been temporarily suspended. The company has been offering lifetime mortgages since 2006 and has lately been facing some funding problems due to financial recession.

Stonehaven has prolonged its three months completion deadline to six months. It also has assured its existing clients that they will not be in any way affected by the changes.

Stonehaven is not the first lender to suspend equity release lending. In 2008 such companies as Saffron Building Society, Northern Rock and Coventry Building Society have either withdrew from this sector or suspended equity release lending.

Peter Welch from the Bridgewater Equity Release said that he was not surprised by Stonehaven's decision because the situation in the sector is really challenging. It is difficult to secure the necessary finance to keep the lifetime mortgage programmes.

Still, all the lenders are hoping the situation in the sector will change for the better