Hodge Lifetime - Flexible Drawdown Plan - NO Early Repayment Charges
Hodge Lifetime is perhaps one of the most reliable equity release lenders in the market today. This is no surprise given that they were the provider that offered the very first equity release plans in 1965. This lender provides reputable products, including their Flexible Repayment Drawdown Lifetime Mortgage. This particular product was designed for those retirees who are looking for more flexibility and control within their lifetime mortgage plans.
The Flexible Repayment Drawdown Lifetime Mortgage offered by Hodge Lifetime allows you to receive a cash lump sum, tax-free. Following the lump sum, you are also eligible for future withdrawals should you need them. The extra cash available to you is placed in a cash reserve from which you can draw if you need to do so. In order to withdraw money from your reserve, you must take out at least £1,000 per transaction. Interest will accrue on any money withdrawn but there are no extra fees associated with withdrawing money from your cash reserve. Each withdrawal comes with a fixed interest rate for life.
Perhaps the most attractive feature of this product is the Flexible Repayment Option. This feature allows you to repay up to 10% of the money you received in your initial loan every year without receiving any penalties. So, you can essentially use the product as a kind of interest only mortgage. You may even find that you are able to pay back some of the capital of the loan! Hodge Lifetime also allows you to repay up to 10% of any withdrawals made from the reserve. There is no guideline as to how many payments you make, so long as you do not surpass the 10% mark and a leave minimum balance remaining of £10,000.
The second unique feature to this product is the Downsizing Protection, which will allow you to downsize in the future without incurring very high repayment charges. In fact, if you downsize after five years, you will not incur any repayment fees whatsoever. Additionally, if you downsized & repaid the whole plan in the first 5 years, then a reducing fixed penalty of 5% down to 1% applies on the original capital borrowed.
This product is available in mainland Scotland, Wales, and England. In order to qualify for this product, you need to be at least 60 years and have a property that is valued at a minimum of £100,000. You must release a minimum of £15,000 in your first withdrawal.
The Hodge Lifetime Flexible repayment Drawdown Lifetime Mortgage can give you an incredible amount of control over your lifetime mortgage. You are able to make repayments that can impact both your interest and your capital and you can do so whenever you choose. This means that you are given control over how much you are expected to repay once your home is actually sold and the original loan repaid.