Hodge Lifetime started out in 1965 offering flexible and cost effective products to the community. Today they have many awards for their retirement products such as the Hodge Lifetime Lump Sum Lifetime Mortgage and other equity release products. Their mortgages offer competitive equity release interest rates whenever possible.
Hodge Lifetime Lump Sum is an equity release for the older generation. It has the benefit of releasing one lump sum of tax-free cash for homeowners to use throughout their retirement.
Criteria Details of the Hodge Flexible Lump Sum Plan
Hodge requires the youngest homeowner to be 60 years of age, with a maximum allowable age of 85. A one-time payment of equity is provided in a tax-free lump sum. The annual percentage rate is a fixed interest rate dependent upon the consumer qualifications.
The property value must be at least £100,000 with a maximum property value of £1 million. The Hodge Lifetime Lump Sum mortgage is available in mainland Scotland, Wales, and England.
The lump sum product works on a loan to value percentage between 20% and 45% with homeowners required to take a sum of £20,000 as a minimum. There is a maximum of £500,000 allowable and the Hodge arrangement fee is £595.
Unique Features of this Hodge Lump Sum Mortgage
While this is a lump sum loan it comes with flexible repayment options and downsizing protection. Downsizing protection allows the homeowner to repay the mortgage without penalty after five years, in the event the homeowner needs to sell the home and move into a different, smaller property.
Hodge Lifetime were the innovators of the 10% voluntary repayment option in 2013. This allows for the applicants to choose to make repayments back to Hodge at any time into the life of the plan. The maximum amount of repayment in any one year is 10% of the original amount borrowed and upto this amount incurs no early repayment charges.
If the homeowner chooses they can repay up to 10% of the initial loan amount per annum, without penalty after the first year, this turns the mortgage from a lump sum into an interest only product.
Eventual repayment occurs at death or when the homeowner needs additional care from a long-term care facility. Should homeowners require early repayment there is a potential early repayment charge. Early repayment charges upon sale are 5% for year one up to 1% for year five. Any repayment on downsizing after 5 years will have zero repayment penalties. The maximum early repayment charge is up to 25% of the initial loan amount where repayment occurs whilst still living in the property.
Hodge Equity Release Incentives
Hodge Lifetime’s Lump Sum Lifetime Mortgage comes with a downsizing protection option. Borrowers have an early repayment charge for only 5 years where moving to a new house is a possibility.