Hodge Lifetime Retirement Mortgages available through Trinity Financial
The Hodge Lifetime Retirement Mortgage is a new type of interest-only mortgage suitable for older borrowers looking to borrow money against the value of their home.
Loans can be used for almost any purpose, including remortgaging, releasing equity to fund home improvements and even to generate cash to purchase a buy-to-let property.
Unlike a traditional mortgage, the term is not fixed and the amount you can borrow is based on your ability to afford the loan, using your retirement income and monthly expenditure.
Aaron Strutt, product manager at Trinity Financial, says: “As the interest has to be paid each month the payments are not rolled up and they don't reduce the amount of equity in the property each month.
“If borrowers can’t secure a mortgage through a high-street bank or building society, Hodge provides an alternative from standard equity release mortgages.
“Before we recommend any of Hodge’s products, our specialist brokers will always make sure that there are not any mainstream options or cheaper rates available.”
The capital amount is repaid from the sale of your home when you die or if you move permanently into long term care.
Acceptance criteria, loans and maximum ages
Hodge lends against the value of your property and they use the youngest applicant’s age.
They will lend up to 50% of the value if you are aged up to 70, 45% of the value between the ages of 71-75 and 40% of the value for those aged 76 and over.
The maximum loan size Hodge offers is £500,000.
Interest roll-up option - If the youngest borrower reaches age 80, or on the fifth anniversary after taking out the loan (if later), borrowers will be able to elect not to pay the mortgage interest and instead add it to the loan each month.
This means older borrowers have an option if their income situation changes or they don’t earn enough money to make the monthly payments.
Hodge also offers a ‘no-negative equity’ guarantee, which means if the sale proceeds are insufficient to repay the capital amount, borrowers will not be liable for the shortfall.
If you would like help to secure a Hodge Lifetime Retirement Mortgage, call Trinity on 020 7016 0790 and ask for Jed Newton. You can also use the contact us form below.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.
There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be £495 at application and £995 on completion of the mortgage.