The Hodge Flexible Repayment Plan is just one of the many products Hodge Lifetime developed for the retirement community. For more than 49 years Hodge Lifetime has provided fixed and flexible competitive annuity interest rates to retirees. They have created numerous lifetime mortgage and equity release plans including the Flexible Repayment Plan. Many of their products and years in service have helped them achieve numerous equity release awards.
Hodge Flexible lifetime mortgage is available as a drawdown or interest only lifetime mortgage. It fits as a drawdown mortgage because it comes with a potential cash reserve facility when the maximum equity release loan is not taken. It also has flexible repayment options that can be used like an interest only lifetime mortgage.
Criteria of the Hodge Lifetime Flexible Option
To fit with consumer’s needs, Hodge has created a flexible roll-up lifetime mortgage with interest only drawdown lifetime mortgage capabilities. Plans start at age 60 for the youngest homeowner. The property needs to value £100,000 at least. Consumers will need to take an initial minimum lump sum withdrawal of £15,000. This plan is available in England, Wales, and mainland Scotland.
Once the tax-free initial lump sum has been made available following the Hodge application process interest will begin compounding. At any point following completion, planholders can begin withdrawing from the cash reserve facility with the rest of the lifetime mortgage funds. There are no administration fees on further withdrawals. There is a withdrawal limit of just £1,000. Consumers must withdraw at least this amount when they remove additional funds from the cash reserve. Interest is fixed on the first withdrawal and compounded onto the principle sum. Interest is applied only to funds withdrawn from the equity release account.
Unique Features of this Hodge Drawdown Lifetime Mortgage
Unique features make this loan an interest only lifetime mortgage plan with the option of the drawdown facility and with downsizing protection options after 5 years of holding the plan. The two biggest draws for the Hodge Flexible Lifetime Mortgage is the ability to make repayments of upto 10% of the original amount borrowed…but without penalty.
Next in popularity for Hodge Flexible Lifetime Mortgage Plan is the downsizing protection option which kicks in after 5 years. This means that if you need to move & consequently downsize within 5 years of setting up the plan, then Hodge will allow you to redeem the mortgage in full without any early repayment charges. In fact they will allow you to even redeem the plan in the first 5 years should the need necessitate, however it would be exposed to a sliding scale penalty system from Hodge Lifetime.
Voluntary Repayment Options
After the first 12 months, consumers can choose to make repayments, effectively turning their Hodge Lifetime drawdown mortgage into an interest-only option too. Once 12 months has passed consumers can send up to 10% of the original amount borrowed in repayment. By repaying the maximum 10%pa then not only will interest be repaid, but also an element of capital. This is ideal for passing on as much inheritance as possible to the beneficiaries. Interest or interest and capital can be repaid on the loan. There is no monthly requirement for how much a payment needs to be other than a maximum of 10%, it is entirely voluntary.
Downsizing protection allows homeowners to repay the lifetime mortgage after 5 years without penalty. If repayment occurs in the first five years there is a penalty charge for early repayment.
Hodge Equity Release Incentives
Hodge Lifetime’s Flexible Repayment Plan offers borrowers a flexible repayment option with downsizing protection in which there are no penalties after 5 years of taking out the loan.