Hodge Lifetime offers a few lifetime mortgages like the Flexible Repayment Plan, which fits as an interest only or drawdown mortgage. They also have a standard retirement mortgage with plenty of benefits for homeowners. Hodge Lifetime has received an award, nearly each year for their products and services since they opened their doors in 1965. The company provides lifetime mortgage products to qualified sellers, who then offer these products to homeowners.
How does the Hodge Retirement Mortgage Meet Lifetime Mortgage Demands?
Hodge Lifetime offers retirement mortgage products in addition to their traditional lifetime mortgages. Their retirement mortgages offer a flexible method to borrowing equity from the home, where the funds from the release can be used for almost any reason or purpose. Under their retirement mortgages, homeowners will need to pay interest each month based on their retirement income and the amount of funds borrowed.
The repayment of interest each month turns the Hodge Lifetime retirement mortgage into an interest only style mortgage. The principle sum of the loan is repaid if the homeowner moves into long term care or dies. The combination of repayment of interest plus lifetime outstanding balance makes the retirement mortgage a lifetime mortgage.
Under the flexible repayment option there is also an option to make payments on the capital sum even in the first 5 years of the loan. Homeowners can repay up to 10% per annum of the initial loan amount plus the interest without a penalty being charged. This particular retirement mortgage has the option to stop payments at age 80, where the loan can then become a roll-up mortgage until it is repaid. Alternatively, the monthly interest payments can continue as before and maintain a level balance for the rest of the homeowners life.
Qualifications and Criteria
Eligibility is dependent on age of single or joint applicants. The amount borrowed is based on the property value. The maximum loan amount is up to £500,000, when the property value supports it. The loan to value percentage is based on the age of the applicant. For example, up to 50% of the home can be borrowed when someone is aged 70, where someone 76 and older can only borrow 40%.
Also to fit eligibility, an applicant will need to show proof of income. This will include any state pension or contribution pension scheme they are entitled to receive each month.
Property needs to be located in Wales, England or Scotland to qualify.
Equity Release Features and Incentives
Hodge Lifetime provides a free valuation, plus 5 year fixed rate with their retirement mortgage plan. It also comes with a 5 year fixed early repayment penalty period based on the amount of funds repaid during that time.