equity release mortgage guide€¦ · when the borrower can choose to convert to interest roll-up ....
TRANSCRIPT
For advisor use only
EquityRelease Mortgage Guide
Product MonthlyInterest Rate Product Fee Early Repayment
Charges Key Features
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)
Fee free and £595 options available
Early repayment charges are made up of one or both of the following:
Early Release Fee
Years 1-4 = 5%Year 5 = 4%Year 6 = 3%Year 7 = 2%Year 8 = 1%
Variable Repayment Charge
Applicable up to age 90 - max-imum of 25% of amount repaid (based on swap rates).
The maximum charge in years 1-8 will never exceed 25%.
Flexible repayment option
Subject to certain conditions up to 10% of initial amount borrowed can be repaid each year with no early repayment charge.
Downsizing protection
No early repayment charge will apply if you repay your loan as a result of selling your home and repaying us from the proceeds of the sale.
Equity Release GuideHodge offers a range of mortgages designed for older borrowers.This guide provides an overview of our equity release products, please visit hodgebank.co.uk for application forms and useful downloads.
4.22%
4.07%
3.98%
3.83%
4.36%
4.22%
4.12%
3.98%
* a survey fee may apply
This document is intended for professional advisers only. 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and does not constitute any advice, recommendation, representation or commitment by us to any person and will be fully superseded by any contractual documentation.
The information may change or become out of date.Each adviser must always check for up to date information as it may differ from what is indicated in this document.
To help you understand how our residential mortgages differ to our equity release mortgages compare below.Please see our Equity Release Product Guide for full details of our Equity Release range.
50+ Residential Mortgage Equity Release Mortgage
Offers fixed or indefinite loan - term dependant on product chosen. Indefinite loan term - lasts until death or moving permanently into long-term care.
For our RIO, the capital repaid from the sale of the property after death or 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 payments must be made when they fall due. No payments are required during the term of the loan.
There are no safeguards if there are difficulties in meeting the mortgage payments.
The borrower has the right to remain in their home until they die or move permanently into long-term care.
The home is at risk if repayments are not kept up on the mortgage. The borrower has the right to remain in their home until they die or move permanently into long-term care.
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 and a credit check will be performed.
The amount borrowed is based on a loan to value ratio which is determined by the borrower’s age.Affordability is not assessed and no credit check is required.
A Residential Mortgage qualification is required to sell these products. An Equity Release qualification is required to sell these products.
HM RMG AAG 08/20
[email protected] 721 4076 Customers: hodgebank.co.ukAdvisers: hodgebank.co.uk/intermediaries
Hodge Life Assurance Company Limited is authorised and regulated by the Financial Conduct Authority under registration number 139315. Registered office in England & Wales is One Central Square, Cardiff, CF10 1FS (No.743437)