Hodge Lifetime is perhaps one of the most reliable and well-known lenders in the current retirement market, having created and launched the very first equity release schemes over four decades ago. This lender offers several unique lifetime mortgages; all geared toward helping retirees capitalize on the equity invested in their homes.
The greatest benefit of the Hodge Lifetime Lump Sum lifetime mortgage is that it allows borrowers to receive a one-time cash lump sum payment and still reap the benefit of a fixed interest rate. While the actual rate you receive will depend on your particular circumstances, the current rate stands fixed for your lifetime.
There are two other major features with this product:
1. Downsizing Protection. Under this protection, you do not stand to pay any early repayment fees if after five years you sell your home or move to a different property and therefore, repay your loan.
2. Flexible repayment option. Under this feature, you can repay up to 10% of the initial amount you borrowed each year without incurring any early repayment fees.
The minimum age to qualify for the Lump Sum lifetime mortgage is 60 and the maximum age is 85. In order to qualify, your property must have a minimum value of £100,000 but cannot exceed a value of £1,000,000. The loan to value range for this product is 20-45%.
With the Hodge Lump Sum lifetime mortgage, loans are available starting at £20,000 and the maximum loan amount is £500,000. Of course, your particular loan will depend on your individual factors but you must borrow the minimum amount to qualify for the product. There are charges that may apply should you choose to repay your loan early. Hodge Lifetime currently has two different variations when it comes to early repayment charges. One of these applies to repayment when moving house and the other applies to repayment when not moving house. If you move house within the first 5 years of your lifetime mortgage, the lender uses a reducing penalty system that begins with 5% and moves down toward 1%. If you are repaying your loan and have not moved, there are different penalties which are linked to the fluctuating long term interest rates called Swap rates.
One consideration to make when determining whether or not this product will work for you is to remember that there is no cash withdrawal option. There is just the lump sum payment available with no future withdrawals available. So, this product will work best for you if you are able to calculate the amount of cash you want and need and do not feel that you will need to tap into your home’s equity any time again in the future. This product is available in Wales, England, and mainland Scotland.
