17 November 2016
- Trust us to do right by your customers – The 55+ residential interest only mortgage was created as Hodge Lifetime believe that customers age 55 and over should have access to a flexible and innovative mortgage product and should not be disregarded due to age.
- Later life lending specialists - One of a small number of lenders that provide an interest only residential mortgage for 55 to 95 year olds.
- Experience - Hodge have been in the business of lending to older borrowers since 1965, throughout this time they have become experts in their field, achieving award winning innovation in this sector.
- Expertise – A dedicated team of staff who can knowledgably deal with you and your customers both pre, during and after the application process.
- Understanding - They understand there is no such thing as a ‘typical’ customer with a ‘typical’ retirement and they adapt their products, processing and underwriting around this.
- The personal approach – At Hodge Lifetime, they believe that each case deserves personal service, from initial contact and underwriting throughout the application process you will deal with a person and not a computer.
- Choice - They offer both fixed and variable rates on the 55+ product
- Competitive rates – Their rates on the 55+ fixed option range from 3.10 to 3.30 with variable at 2.99 with a choice of 2 year and 5 year fixes.
- Flexibility – Offering the ability to overpay by up to 10% from day one, meaning your customer can reduce the capital on the mortgage as well as paying the interest monthly.
- Responsible lending - Did you know they do the right thing with regard to having a social responsibility too? The Hodge Foundation, a charity supporting the welfare, medical, academic and educational areas owns over 75% of their business. This drives them, knowing that by helping their customers achieve their goals, they are also helping good causes that are important to them. Visit their website to see their new look and read more.
Visit - www.hodgelifetime.co.uk for more information or for a personalised quotation call them on 0800 731 4076 or email firstname.lastname@example.org
As well as the above here are two case studies provided my Hodge Lifetime.
Hodge Lifetime 55+ case study – The Smith’s
- Mr & Mrs Smith are aged 78 & 63 and are coming to the end of their interest only mortgage term. They want to borrow £80,000 on their property, to enable them to clear their existing mortgage and clear some unsecured borrowing. The property is currently valued at £240,000 and they want a mortgage term of 30 years.
- They have chosen downsizing as their preferred repayment strategy, as they wish to remain in their existing property for as long as they are able, in order to remain close to family.
- Both applicants are currently retired with Mr Smith in receipt of a full state pension and Mrs Smith due to receive a full state pension at 65.
- Additionally Mr & Mrs Smith are in receipt of private defined benefit pensions for £25,700 & £15,000 which both have spouse benefit of 50%.
- The 55+ mortgage could be offered for the loan amount requested providing them with the flexibility to continue interest only mortgage payments and to remain in their current property and remain around their family.
Why does this case work?
- Ages qualify because the youngest borrower is 63 so a term of 30 years takes them to 93 which is within the 55+ mortgage criteria age range (based on the youngest borrower).
- Downsizing is an acceptable strategy because there is more than £150K equity left in the property after the loan has been taken out.
- Affordability works because both Mr & Mrs Smith have a good amount of pension income from both state pension and defined pensions with a 50% spouses benefit meaning one could afford repayments in the event of their spouses demise.
The 55+ from Hodge Lifetime – a residential interest only mortgage for customers age 55-95.
Hodge Lifetime 55+ case study – The Lewis’s
- Mr & Mrs Lewis are aged 69 & 72 and have no mortgage currently on their existing residential property. Their children have left home but they want to raise £195,000 as a gift for one of their children and help them purchase a residential property. The property is currently valued at £350,000 and they want a mortgage term of 20 years.
- They have chosen downsizing as their preferred repayment strategy, with them planning to move into a smaller property in the same area at the end of the mortgage term.
- Both Mr & Mrs Lewis are still working stating they plan to do so until the age of 80. They are earning a combined employed income of £19,000.
- The applicants are both drawing state pensions and also in receipt of private defined benefit pensions of £11,000 & £13,000 respectively, which both have 50% spouse benefit. Additionally Mr & Mrs Lewis have combined cash savings of just over £200,000.
- The 55+ mortgage could be offered for the loan amount requested, providing flexibility to release equity to assist a family member, as well as enabling them to retain savings they have accrued for their retirement.
Why does this case work?
- Ages qualify because youngest borrower is 69 and a term of 20 years takes them to 89 which is within the 55+ mortgage criteria age range (based on the youngest borrower).
- Downsizing is an acceptable strategy because there is over £150K equity left in the property after the loan has been taken out.
- Affordability works because both Mr & Mrs Smith have a good amount of income having both employment and retirement income, the defined pensions have a 50% spouses benefit on each meaning they could continue repayments in the event of their spouses demise.
- As they both undertake part time administrative office based duties in their business roles we would consider it acceptable for them to work until age 80 and therefore can take this income fully into account when assessing affordability.
Hodge Lifetime is only available in England and Wales presently