The Hodge Lifetime Drawdown Mortgage facilitates homeowners to spend their tax-free cash as they wish, with no need in having to make any repayments. However, one of the features of the Hodge Lifetime plan is the Flexible Repayment Option. This enables the homeowner to control their future balance by making repayments of upto 10% of the original amount borrowed each year, with no penalty.
The homeowner can make ad-hoc voluntary repayments starting from a minimum of £250 each time back to Hodge with the main advantage being that NO proof of income is needed. No penalties are incurred either upon repayment, as long as the amount repaid does not go over the maximum 10% limit each year.
Therefore, for those having difficulty obtaining residential mortgages, voluntary repayment schemes offer a non-verification mortgage alternative. This feature can help manage to repay the interest charged by Hodge, thus rendering the balance level throughout, effectively acting as an interest-only lifetime mortgage.
The Hodge Flexible Lifetime Mortgage can be used for capital and repayment purposes also. For instance, if the full 10% allowance is used every year, then the balance would be reduced significantly; ideal if wanting to protect any inheritance. These payments are purely voluntary the choice of the homeowner. Upto 12 payments can be made each year, subject to a minimum of £250 and following inception of the plan.
The Hodge Downsizing Protection Option can be exercised after inception should the homeowner wish to sell & downsize home. If this occurs after day 1 of the plan starting then NO early repayment charge is levied by Hodge.
This is ideal for homeowners with properties on the market, who cannot sell, yet may require funds to maintain ongoing living costs. By releasing funds via this Hodge Lifetime Lump Sum scheme, the plan can be repaid penalty free should you eventually downsize anytime in the future.
Hodge offer a choice of fixed, fixed and variable, or just variable early repayment charges (ERC's). Depending upon which version is selected will affect the interest rate of the plan offered.
The lower interest rates are available on the variable ERC plans which are linked to long term swap rates and can incur a maximum penalty of 25% of the capital repaid. This penalty runs until after the youngest borrowers 90th birthday.
When choosing fixed ERC's, the interest rate is set higher than the variable ERC. However, fixed ERC's only apply over an 8 year term; 5% in yrs 1-4, then tapering down yearly to just 1% in the final year. No ERC's exist after the 8th year.
Additionally, there is the option of choosing whether to pay an application fee, or not. Again, this choice will affect the interest accordingly, By selecting to pay an application fee will afford the lowest interest rate. Contact the team for further details.
*A free valuation on properties valued upto £1 million is currently offered on Lump Sum Plans V1 & V3. The free valuation is reduced to £350,000 on V2 & V4 plans.
**The rate shown above incurs an application fee of £595.
To obtain further information or to request a quotation on the Hodge Flexible Lifetime Mortgage equity release scheme, please contact the Equity Release Supermarket team on Freephone 0800 802 1051 today.