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Stonehaven Mortgage & Equity Release Review (2025): What's Inside?

  • Last Updated: 05 Aug 2025
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  • Our team recently fact checked this article for accuracy. However, things do change, so please do your own research.

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Stonehaven equity release in 2025 features competitive rates, flexible repayment options, and inheritance protection. Keep reading for facts and insights to help you determine if Stonehaven suits your retirement plan.
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Be aware. Equity release comes with drawbacks which are important to think about. Lifetime mortgages are secured loans. Compound interest means the amount you owe can grow quickly. Equity release reduces your estate's value and may impact means-tested benefits.

Key Takeaways

  • Stonehaven no longer offers equity release products. The company was acquired by Retirement Advantage in 2015, which was subsequently acquired by Canada Life in 20181. Any former Stonehaven equity release offerings are now managed under Canada Life's financial services.
  • Stonehaven’s legacy equity release products included lifetime mortgages with features such as inheritance protection and fixed interest rates. While these are no longer directly available, similar products may still be accessed through Canada Life Home Finance.
  • For individuals aged 55 and over, exploring regulated equity release alternatives through current providers may offer greater flexibility than traditional schemes. It's essential to compare features such as voluntary repayments, interest roll-up options, and protected equity guarantees.

Stonehaven was once a recognised equity release provider in the UK, best known for its range of lifetime mortgage products designed for homeowners over 55. In 2015, Stonehaven merged with MGM Advantage to form Retirement Advantage, which was later acquired by Canada Life in 20182. Today, Stonehaven no longer operates as a provider, but its legacy continues through Canada Life Home Finance's equity release products.

In This Article, You Will Discover:

    This guide offers an evidence-based overview of Stonehaven’s history, its previous product features, and how they compare with modern equity release options available today. All information has been reviewed against current UK regulations and industry data to support informed financial decision-making.

    Therefore:

    NOTEEveryInvestor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of EveryInvestor only and may not reflect the views or opinions of Stonehaven. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by Stonehaven.

    Who Was Stonehaven and What Happened to It?

    Stonehaven was a notable UK equity release provider until it underwent a series of strategic mergers and rebranding:

    • In January 2014, Stonehaven was acquired by MGM Advantage.
    • In 2015, MGM Advantage and Stonehaven merged to form Retirement Advantage.
    • In January 2018, Retirement Advantage was acquired by Canada Life Group UK, it added over 30,000 equity release and pension customers, along with more than £2 billion in assets under management3.
    • By October 2018, Canada Life formally integrated all Retirement Advantage equity release operations under the Canada Life Home Finance brand.

    Today, Stonehaven UK Ltd remains a legal entity and continues to hold FCA authorisation, but it does not operate directly in the market. All its former products are now managed under Canada Life Home Finance.

    Key Historical Facts

    DateEvent
    Jan 2014Stonehaven acquired by MGM Advantage
    2015MGM Advantage merges with Stonehaven to become Retirement Advantage
    Jan 2018Retirement Advantage acquired by Canada Life UK
    Oct 2018Products rebranded under Canada Life Home Finance

    Stonehaven’s legacy lives on under Canada Life’s stewardship, with its former equity release products now administered through the Canada Life Home Finance arm.

    What Were Stonehaven’s Key Features Before the Acquisition?

    Before being integrated into Canada Life's portfolio, Stonehaven was known for offering flexible lifetime mortgage products tailored to the needs of homeowners over 55. Their plans stood out in the equity release market for several reasons:

    Flexible Interest Payments

    Stonehaven offered Interest Select plans, allowing borrowers to pay off some or all of the interest each month. This helped reduce compound interest over time and gave homeowners more control over their total debt. These payments were voluntary and could be paused or stopped without penalties or affordability reassessments.

    Inheritance Protection

    Borrowers could ring-fence a percentage of their property's value to pass on to beneficiaries. This inheritance guarantee ensured that part of the home’s future value would remain untouched by the loan, subject to certain conditions.

    Cash Reserve Facility

    Instead of withdrawing a full lump sum upfront, borrowers could opt for a drawdown facility. This allowed them to take funds in smaller amounts when needed, with interest only charged on the money drawn.

    Downsizing Protection

    Stonehaven plans typically included downsizing protection, allowing borrowers to repay the mortgage early without incurring early repayment charges if they moved to a smaller home under qualifying conditions.

    Transparent Early Repayment Charges

    They used a fixed early repayment charge structure, making costs predictable:

    • 5% if repaid within the first five years
    • 3% if repaid between years six and eight
    • No charge after year eight

    No Negative Equity Guarantee

    Stonehaven participated in the Equity Release Council’s standards, offering a guarantee that borrowers would never owe more than the sale value of their home.

    These features reflected Stonehaven’s focus on flexibility, intergenerational wealth planning, and responsible lending. While Stonehaven-branded products are no longer available, many of these features have been retained or adapted under Canada Life Home Finance.

    How Stonehaven’s Legacy Influences Canada Life Today

    Although the Stonehaven brand no longer operates in the equity release market, its influence is still visible in the lifetime mortgage products currently offered by Canada Life Home Finance. Many of the original features introduced by Stonehaven have been retained, enhanced, or adapted for the modern retirement lending landscape.

    Key Legacy Features Retained by Canada Life

    1. Voluntary Repayments
    Canada Life allows borrowers to repay up to 10 percent of the original loan amount each year without penalty. This continues Stonehaven’s emphasis on flexibility through voluntary interest payments4.

    2. Drawdown Facilities
    Customers can choose a drawdown option, releasing an initial lump sum and accessing additional funds later as needed. Interest is only charged on the money drawn, preserving Stonehaven's flexible access to funds5.

    3. Fixed Early Repayment Charges
    Canada Life maintains a structured early repayment charge model. For example, there may be no penalty after a set number of years, similar to Stonehaven's fixed charge periods.

    4. Downsizing Protection
    If a customer moves to a new property or into long-term care, some Canada Life plans allow for early repayment without penalty under qualifying conditions. This reflects Stonehaven's customer-friendly protections.

    5. Inheritance Protection
    Borrowers can ring-fence a percentage of their home’s value for inheritance. This feature originated in Stonehaven's lifetime mortgage plans and continues under Canada Life’s offerings, alongside a no negative equity guarantee, which is standard for providers following Equity Release Council guidelines.

    Brand Continuity and Modernisation

    • Adviser Continuity: Many financial advisers who recommended Stonehaven products now advise on Canada Life lifetime mortgages, which contain similar product structures and borrower protections.
    • Regulatory Consistency: Canada Life is fully regulated by the Financial Conduct Authority and the Prudential Regulation Authority. This ensures all plans adhere to UK compliance standards.
    • Additional Features: Canada Life has expanded its offering with services like WeCare, a free virtual health and wellbeing support service for mortgage customers.

    Stonehaven's legacy laid the groundwork for many of the flexible, customer-focused features now standard in Canada Life’s lifetime mortgage products. From voluntary repayments to inheritance protection, Canada Life continues to offer products that reflect the innovation Stonehaven introduced to the equity release market.

    Who Can Benefit From Retirement Lending Through Canada Life?

    Canada Life’s lifetime mortgage products are designed for UK homeowners aged 55 or over, offering access to tax-free cash while allowing them to remain in their homes. These products are suitable for individuals looking to:

    • Unlock home equity to supplement retirement income
    • Fund home improvements, debt repayment, or family support
    • Stay in their property while accessing cash
    • Safeguard inheritance for beneficiaries using optional ring-fencing features

    Eligibility depends mainly on age, property value (usually a minimum of £70,000), and domicile in England, Scotland, or Wales.

    Typical Costs, Fees, and Considerations

    Here is a comparison of legacy and current lifetime mortgage costs:

    AspectLegacy StonehavenCurrent Canada Life
    Setup FeesAdvised with potential solicitor/adviser costsNo valuation or completion fee for Capital Select
    Adviser and Solicitor CostsStandard industry chargesAdviser and legal fees apply; no Canada Life product fee 
    Early Repayment Charges (ERCs)5% in years 1–5; 3% in years 6–8; none after year 8Same structure under current Capital & Lifestyle Select 
    Voluntary RepaymentsUp to 10% yearly without penaltyUp to 10% per year without ERCs 
    Drawdown OptionCash reserve drawdown with interest on withdrawn fundsAvailable on most current plans; interest only on withdrawn amounts 
    No Negative Equity GuaranteeCouncil standard guaranteeIncluded in all current lifetime mortgages 

    Other considerations:

    • Interest compounds if voluntary repayments are not made
    • Equity release reduces estate value and may affect means-tested benefits
    • Products can typically be moved if relocating to a new property (subject to suitability) 

    How to Contact Canada Life About a Legacy Stonehaven Plan

    If you hold a historical Stonehaven-branded lifetime mortgage, you can still reach out to Canada Life Home Finance for servicing and queries. Available contact options include:

    • Phone: 0800 068 0212 (Canada Life Home Finance general enquiries)
    • WeCare enquiries: 0208 068 0035 for health and wellbeing support services Trust PMS
    • Postal address:
      Canada Life Home Finance
      Canada Life Place
      Potters Bar
      Hertfordshire EN6 5BA

    Please note that the website stonehavenequityrelease.info is not run by or affiliated with Canada Life and should not be used to compare Canada Life equity release products.

    Frequently Asked Questions About Stonehaven Equity Release

    Yes. Stonehaven was a member of the Equity Release Council (ERC) and adhered to its strict consumer protection standards, including the no negative equity guarantee. This meant borrowers would never owe more than the value of their home when it was sold to repay the loan.

    Although Stonehaven no longer operates, current Canada Life products continue to follow ERC standards.

    Yes, you can. After Stonehaven was absorbed by Retirement Advantage and later acquired by Canada Life, all servicing of existing Stonehaven lifetime mortgage plans was transferred to Canada Life Home Finance.

    If you have a Stonehaven plan, Canada Life remains your point of contact for account queries, statements, repayments, or plan modifications.

    Canada Life’s lifetime mortgages are suited for UK homeowners aged 55 or over who want to unlock tax-free cash from their home without selling it.

    These products are ideal for supplementing retirement income, funding home improvements, supporting family members, or clearing existing debts.

    However, they may not be suitable for everyone, especially those concerned about reducing inheritance or affecting eligibility for means-tested benefits.

    Most Stonehaven plans included standard industry charges such as adviser fees, legal fees, and potential early repayment charges (ERCs).

    Many plans had fixed ERCs, such as 5% for the first five years and 3% for years six to eight, with no charge after year eight.

    Canada Life may also apply administration fees for specific services. It’s best to review your original documentation or contact Canada Life directly for a full breakdown of costs that apply to your specific legacy plan.

    Stonehaven’s plans, like those now under Canada Life, often include downsizing protection or care-related provisions.

    If you move into long-term care, early repayment charges are typically waived.

    If you plan to move to a new property, you may be able to transfer the mortgage, subject to lending criteria and approval.

    It’s important to notify Canada Life early in either case to explore your available options.

    Yes, in many cases. Canada Life assesses whether the new property meets their lending criteria, including location, value, and construction type.

    If the property is eligible, your Stonehaven plan can usually be ported without penalty.

    However, if the new home does not meet their criteria or you downsize, you may need to repay the loan, potentially triggering early repayment charges unless you qualify for a waiver.

    Yes, most Stonehaven plans included early repayment charges (ERCs), particularly within the first eight years of the loan.

    These charges were typically fixed and decreased over time. However, many plans also included exemptions, such as for moving into long-term care, the death of a joint borrower, or downsizing.

    The exact penalty structure depends on your individual plan. Canada Life can provide a redemption statement detailing any costs involved with early repayment.

    You can request historical documentation, including original plan terms, redemption statements, and policy details, directly from Canada Life Home Finance.

    They maintain full servicing records for all legacy Stonehaven customers. Contacting them with your plan reference number will speed up the process.

    It is recommended to keep your own copies of documents for reference, especially if you are considering repayment, plan changes, or inheritance planning.

    Concluding Thoughts on Stonehaven

    Stonehaven played a significant role in shaping the UK equity release market, particularly through its focus on flexible repayment options, inheritance protection, and borrower control. Although the brand itself no longer operates, many of its core product features have been preserved under Canada Life Home Finance.

    If you're researching legacy plans or seeking similar lifetime mortgage features today, Canada Life offers a continuation of what Stonehaven originally introduced. However, as with any financial product, it is essential to review all available options.

    Always consult an independent, FCA-regulated financial adviser to assess whether a lifetime mortgage is appropriate for your circumstances. They can provide comparisons across multiple providers and help ensure that decisions align with your long-term financial goals and estate planning needs.

    The features mentioned and the amounts raised, are subject to the lender’s criteria, terms, and conditions. These may take into account the age, health, and lifestyle factors in order to provide an enhanced amount. To understand the features and risks, ask for a personalised illustration.

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