Offering retirement solutions since 1965, Hodge Lifetime continues to operate as an equity release provider. The company focuses on annuity and lifetime mortgage products with competitive annual percentage rates (APRs). The Hodge Lifetime Retirement Mortgage is just one of the products they offer homeowners age 55 and older.
Hodge Lifetime is an award winning company, with an FCA license to operate as an equity release provider. They are members of the Equity Release Council & therefore abide by the Equity Release Council Code of Conduct which includes the five main principles.
Summary of the Hodge Retirement Mortgage Plan
Hodge offers various lifetime mortgages with special repayment options. This particular mortgage is considered a retirement mortgage with a solution of repaying interest only mortgages.
The Hodge Retirement Mortgage is designed to cater for various financial needs in retirement; be it home improvements, moving home, buying a second home, gifting to the children or any other expenditures expected in retirement. Another main reason for the Hodge Retirement Plan is the number of people entering retirement & struggling to redeem their interest only mortgages.
The Hodge Retirement Mortgage therefore can be used as a safety net for these people who have been pressed for repayment by their lender and whose only other option would have been to sell their property. Fortunately, the Hodge Retirement Plan can offer a lifeline to some.
Hodge will only require repayment of only interest which will render the balance level for the term of the mortgage. The plan will run the entire life of the applicants and repaid upon death or moving into long term care. The monthly payments are contractual, so the lender will insist on repayments being maintained for the duration, or at least up until age 80 when the roll-over option can be selected & payments cease.
Criteria of the Hodge Retirement Mortgage Option
Applicants may be 55 to 70 years of age, where they own their main resident and have a property value of at least £100,000. The property has to be located in mainland Scotland, England or Wales.
The minimum equity release loan amount is £20,000, with a maximum up to £500,000.
Maximum Loan Affordability Calculation
The Hodge Retirement Mortgage is a flexible interest only plan built on the consumers’ affordability instead of loan to value percentages. Homeowners can release up to 50% of the home value with this loan and spend the funds on anything they wish. Homeowners will need to prove a stable income for their entire retirement to qualify on affordability.
Following completion of a decision in principle whereby all aspects of the applicant’s income & expenditures are gathered, Hodge will underwrite each case individually. In addition a credit check will be done & results applied accordingly.
Unique Features of this Retirement Mortgage
After the plan holder reaches 80, they can decide to turn this retirement mortgage from an interest only loan into a roll up equity release. If consumers begin to struggle with interest payments or just wish to cease them they can convert the loan to roll-up.
Initially this loan will start off as an interest only lifetime mortgage with interest repayments required each month. Homeowners can choose their repayment amount of up to 10% of the capital repaid each year. There is no penalty for repayment within the first 5 years since it is an interest only mortgage. If a homeowner decides to pay more than 10% towards interest and capital there is a repayment charge of 5% in the first year which is reduced 1% each year with year 5 penalty charge of 1% and zero starting in year 6. The mortgage can therefore be repaid after 5 years with no early repayment charge applicable.
Hodge Equity Release Retirement Mortgage Incentives
Hodge Lifetime currently offer a free valuation on their Retirement Mortgages. They also offer a competitive 5 year fixed rate which is renewal after 5 years at whatever rate is available at that time, or they can leave on the standard variable rate. Hodge also offer flexible repayments and 5 year early repayment charges, with none thereafter.