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Equity Release Mortgage Guide For adviser use only

Equity Release Mortgage Guide · 2020. 5. 5. · Equity Release Mortgages Retirement Mortgage Indefinite loan term - lasts until death or moving permanently into long-term care. Equity

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Page 1: Equity Release Mortgage Guide · 2020. 5. 5. · Equity Release Mortgages Retirement Mortgage Indefinite loan term - lasts until death or moving permanently into long-term care. Equity

Equity Release Mortgage Guide

For adviser use only

Page 2: Equity Release Mortgage Guide · 2020. 5. 5. · Equity Release Mortgages Retirement Mortgage Indefinite loan term - lasts until death or moving permanently into long-term care. Equity

Equity Release Guide - For adviser use onlyHodge offers a range of mortgages designed for older borrowers. This guide provides an overview of our equity release products, please visit hodgeforintermediaries.co.uk/resources for application forms and useful downloads.

Range

Downsizing Protection products

Retirement Mortgage

Overview Products in the range

Current interest

rates

Product fee

Early repayment

chargesKey features

Comprises of lump sum & flexible

"roll-up" lifetime mortgages with

fixed rates of interest and options with

regards to early repayment

charges.

The range includes "Downsizing Protection".

This means that from day one our

customers can repay their loan in

full from the proceeds of the

sale of their property without incurring an early repayment charge.

This is an interest-only

lifetime mortgage with the option to "roll-up" interest from age 80 at a variable rate of

interest (linked to our SVR). Early

repayment charges are fixed.

No early repayment

charge will apply if you repay

your loan as a result of selling your home and

repaying us from the sale of the

proceeds.

Higher LTVs available on

Extended LTV products - from

19% at age 55.

Lump Sum Lifetime Mortgage

V1 (Fee Free* & Fixed ERC)V2 (Fixed ERC)V3 (Fee Free* & Variable ERC) V4 (Variable ERC)

Flexible Lifetime Mortgage

V1 (Fee Free* & Fixed ERC)

V2 (Fixed ERC)

V3 (Fee Free* & Variable ERC)

V4 (Variable ERC)

Lump Sum Extended LTV

V1 (Fee Free* & Fixed ERC) V2 (Fixed ERC)V3 (Fee Free* & Variable ERC) V4 (Variable ERC)

Flexible Extended LTV

V1 (Fee Free* & Fixed ERC) V2 (Fixed ERC)V3 (Fee Free* & Variable ERC) V4 (Variable ERC)

* a survey fee may apply

Lump Sum

V1 4.05%V2 3.90%V3 3.80% V4 3.65%

Flexible

V1 4.20%V2 4.05%V3 3.95%

V4 3.80%

Lump Sum Ext

V1 4.40%V2 4.25%V3 4.15%V4 4.00%

Flexible Ext

V1 4.55%V2 4.40%V3 4.30%V4 4.15%

Fee free and £595

options available

2 year fixed rate

5 year fixed rate

2yr 4.05%

5yr 4.45%

Reverts to SVR

thereafter currently 4.70%

£995

Early repayment charges are

made up of one or both of the

following:

Early Release Fee

Years 1 to 4 - 5%Year 5 - 4% Year 6 - 3%Year 7 - 2%Year 8 - 1%

Variable repayment

charge

Applicable up to age 90 -

maximum of 25% of amount

repaid (based on swap rates).

Please note, the maximum

charge in years 1-8 will never exceed 25%.

See product summary for

more information.

2 year fixed:

Year 1 & 2: 3%

5 year fixed:

Year 1: 5%Year 2: 4%Year 3: 3%Year 4: 2%Year 5: 1%

Option to convert to roll-up at age 80 (or after 5 years if mortgage taken at age 76 or over).

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This document is intended for professional advisers only and no other person. It provides general information. It is not comprehensive and does not constitute any advice, recommendation, representation or commitment by us to any person and will be fully superseded by any contractual documentation. The information in it may change and become out of date. Each adviser must always check for up to date information as it may differ from what is indicated in this document.

Page 3: Equity Release Mortgage Guide · 2020. 5. 5. · Equity Release Mortgages Retirement Mortgage Indefinite loan term - lasts until death or moving permanently into long-term care. Equity

For more information, speak to our team direct:

0800 731 [email protected] www.hodgeforintermediaries.co.uk

Hodge is a trading name of Julian Hodge Bank Limited which is registered in England and Wales(No. 743437). It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Its registered office is One Central Square, Cardiff, CF10 1FS.

Hodge’s Privacy Notice confirms how we manage and process your personal data. If you require more detail on how we handle your information please go to https://www.hodge.co.uk and click on the Privacy & Cookies link or call 0800 289 358

HM ER AAG 12/19-1

To help you understand how our residential mortgages differ to other Hodge mortgages, compare below, please see our Equity Release product guide for full details of our Equity Release range and Retirement Mortgages.

50+ Residential Mortgages Retirement Mortgage

Residential MortgagesOffer fixed or indefinite loan term

dependent on product chosen.

Equity Release Mortgages

Retirement MortgageIndefinite loan term - lasts until death or moving permanently into long-term

care.

Equity ReleaseIndefinite loan term - lasts until death or moving permanently into long-term

care.

For the RIO, the capital repaid from the sale of the property after death or long-term care (downsizing protection is available for our RIO Fixed for Life -

see the Product Summary for more details).

This is an interest-only loan. The capital is repaid from the sale of the home after

death or entry into long-term care.

This is an interest "roll-up" loan. The capital and interest is repaid from the sale of the home after death or

entry into long-term care.

All monthly interest payments must be paid as they fall due.

No payments are required during the term of the loan.

All monthly interest payments must be paid as they fall due, at least until the youngest borrower reaches 80, or the 5th anniversary of the loan (if later),

when the borrower can choose to convert to interest "roll-up".

There are no safeguards if difficulties are encountered in meeting the

mortgage payments.

If payment difficulties are encountered after age 80, the interest can be "rolled

up".

The borrower has the right to remain in their home until they die or move

permanently into long-term care.

The borrower has the right to remain in their home until they die or move

permanently into long-term care.

Up to age 80, or the fifth anniversary after completion of the loan (if later),

the home is at risk if the the repayments are not kept up on the

mortgage.

The home is at risk if the repayments are not kept up on the mortgage.

The amount borrowed is based on the ability to afford the mortgage. This is

based on income and expenditure up to a maximum loan to value ratio.We will consider pre and post

retirement income in assessing affordability. A credit check will be

performed.

The amount borrowed is based on a loan to value ratio which is

determined by the borrowers' age.

Affordability is not assessed and no credit check is required.

The amount borrowed is based on the ability to afford the mortgage. This is

based on income and expenditure up to a maximum loan to value ratio.We will consider pre and post

retirement income in assessing affordability. A credit check will be

performed.

A Residential Mortgage qualification is required to sell these products.

An Equity Release qualification is required to sell these products.

An Equity Release qualification is required to sell these products.