Upload
others
View
4
Download
0
Embed Size (px)
Citation preview
Equity Release Mortgage Guide
For adviser use only
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).
Fle
xib
le r
epay
men
t op
tion
- s
ub
ject
to
cert
ain
con
dit
ion
s u
p t
o 10
% o
f in
itia
l am
oun
t b
orro
wed
can
be
rep
aid
eac
h y
ear
wit
h n
o ea
rly
rep
aym
ent
char
ge.
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.
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.