Hodge Lifetime is one of the most reputable providers and lenders in the equity release market. In fact, this lender provided the very first equity release scheme back in 1965 and is now one of the biggest and most established providers in all of the UK. Hodge Lifetime provides unique products to those looking to secure their retirement years by tapping into the equity they have saved up in their home. One of the most unique products offered by this provider is the Retirement Mortgage, which offers a new spin on the traditional lifetime mortgage.
The Retirement Mortgage offered by Hodge is a flexible option available to those retirees looking to secure money against the value of their home. With this product, you are required to make monthly payments to pay off the interest accruing on the amount you borrow. The amount you need to pay each month will of course be based on the initial amount you borrow, as that will impact the interest you are accruing.
That initial amount you borrow will be determined by the regular income you have during retirement. This is a way to ensure that you are able to comfortably pay the monthly interest payments. It is only the interest that you must pay each month. You are not required to pay any of the capital you borrow until you sell your home meaning that the loan term on this product is not fixed. In most cases, the loan is repaid either when the borrower passes away or when they enter into permanent long term care.
What is most critical to remember with the Hodge Retirement Mortgage is that you must make all monthly payments required. Your home can become at risk of being repossessed if you cannot keep up with your required payments. Your ability to making monthly payments could potentially be impacted if your expenditures increase in the future or your income reduces.
The process for determining how much you can borrow will be based on the income you receive during you retirement as well as what other expenditures you may currently have. This information will be used to determine your affordability in making monthly payments. Therefore, the amount that you have to pay each month will be affordable but you must ensure that you make your payments on-time each month.
In order to qualify for the Retirement Mortgage with Hodge Lifetime you must be over 55 and own a property in Scotland, Wales or England with it being of standard construction.