Freephone 0800 802 1051
Freephone 0800 802 1051
Compare Deals Voluntary Payment Lump Sum Lifetime Mortgage

Hodge Lump Sum Lifetime Mortgage Details (Voluntary)

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Compare Deals Voluntary Payment Lump Sum Lifetime Mortgage

Lump Sum Lifetime Mortgage

  • Type Fixed
  • Rate 3.59%
  • APR 3.79%
Incentives:
  • Free Valuation
  • Free Application
Offers:
  • 10%pa Voluntary Payment Option
  • Day 1 Downsizing Protection
  • Fixed &/or Variable ERC Options

Background

Hodge Lifetime was original formed in 1965 as Home Reversions Ltd and was a founder member of the trade body - SHIP (Safe Home Income Plans) in 1991, whom itself was recently rebranded as the Equity Release Council. Hodge Lifetime are a subsidiary of Julian Hodge Bank and have now been providing equity release schemes longer than any other equity release UK company.

Specialising in the post retirement marketplace, Hodge Lifetime offer a range of products from annuities to equity release schemes. Their equity release mortgages were the first to incorporate a flexible 10%pa repayment strategy, of which other lenders have since mirrored. This allows total control of the future balance as necessitated by the homeowner. With additional unique product features, Hodge Lifetime are a leading innovator in this expanding industry.

Eligibility

The Hodge Lifetime Lump Sum Mortgage Plan is a one-off lump sum equity release scheme which is ideal for homeowners looking for a larger amount of tax-free cash, with potentially no requirements for future funds.

Hodge's minimum acceptable property valuation on their Lump Sum Lifetime Mortgage is £100,000 with a maximum valuation of £1 million. Please contact us directly on properties valued over £1 million as cases can be individually underwritten, with bespoke quotes via Equity Release Supermarket - Freephone 0800 802 1051.

The homeowners property must be their main residence and needs to be located within England, Wales and mainland Scotland.

Hodge's Lump Sum Lifetime Mortgage is available on both a single and joint life basis with a minimum age of youngest homeowner being 55 and a maximum age at entry of 88.

The minimum release Hodge will accept on their Lump Sum application is £20,000 with a maximum equity release lending amount of £600,000. Please call us on Freephone 0800 802 1051 for your personalised Hodge Lifetime Key Facts Illustration.

Features

The Hodge Lump Sum Lifetime Mortgage is effectively a one-off lump sum equity release plan which provides the homeowner with tax-free cash which can be spent on anything they desire. The key to this plan which sets it apart from other lump sum plans are the options which are designed to be adaptable to the homeowners situation which allow control over the future balance and flexibility should their residential circumstances change.

This Hodge Lump Sum Lifetime Mortgage plan comes with the benefit of a free valuation on properties valued upto £1 million - thus reducing set-up costs. This lump sum tranche of money receives a fixed lifetime equity release interest rate which has the benefit of the homeowner knowing the exact future balance.

Hodge Lifetime are members of the Equity Release Council and consequently their plans come with a no-negative equity guarantee. The protection this affords is that upon death and sale of the property, any beneficiaries cannot be left with any personal debt owing to the equity release provider.

There is no regular payment commitment imposed by Hodge, thus the interest if required can be left to roll-up. However, there is a 10% per annum flexible repayment option which does allow homeowners to make repayments to Hodge Lifetime and help control their balance.

A original feature of this Hodge Lifetime equity release plan is the Downsizing Protection feature. This allows the homeowner to downsize or sell-up after day 1 of starting your loan and will incur NO early repayment charges.

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.

Options

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.

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