The Hodge Lifetime Lump Sum 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.
Therefore, should a level balance be required, the homeowner can elect to make repayments of interest only back to Hodge Lifetime after the paln has started. The Hodge Lifetime UK scheme can be used for capital & repayment purposes as should 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 and the choice of the homeowner.
Hodge now 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 Lifetime Lump Sum equity release scheme, please contact the Equity Release Supermarket team on Freephone 0800 802 1051 today.