Hodge 50+ RIO Mortgage

RIO - 2 Yr Fixed (fee free) (75% LTV)

Type Fixed
Rate 6.10%
APRC 7.10%

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Incentives:

Free Valuation
Legal Fees Contribution

Offers:

Free Remortgage Legals Package*
5-Year Fixed Rate
Interest-Only Mortgage
Maximum LTV - 70%
5-Year Early Repayment Charges

Background

Hodge have been a trusted provider of retirement products since its inception in 1965 and in 1991 were a founder member of the trade body - SHIP (Safe Home Income Plans), now known as the Equity Release Council. Hodge is most well-known for balancing solid products with social responsibility, intentionally fostering a strong connection with charity and social causes.

One area Hodge have recently been focusing on is the bridge required between retirement mortgages and equity release. They have been a leading innovator in this expanding pre and post-retirement mortgage industry and one of the first to offer a mortgage specifically designed for homeowners nearing, or in retirement.

The Hodge 50+ RIO mortgage was launched to provide an interest-only mortgage available to borrowers who are 50 years old and over. The RIO mortgage was designed to allow homeowners to take their borrowing into retirement where many mainstream lenders won’t. Hodge are one of the first advocates of the Retirement Interest Only Mortgage (RIO) and later life lending in general.

RIO mortgages help borrowers make monthly interest-only payments on a loan which runs over their lifetime and only requires repayment upon death or them moving into care. Therefore, the repayment vehicle permitted under RIO mortgages is the sale of the property itself.

Eligibility

This product is available to residential homeowners aged 50+ and own their property whose minimum valuation must be £100,000 and a maximum of £3m outside of London & upto £5m within London and high value designated areas. For properties with values greater than £5m, bespoke quotations maybe available, hence contact Equity Release Supermarket on Freephone 0800 802 1051 for your personalised Key Facts Illustration.

The amount available for borrowing is directly related to the homeowner’s ability to afford the repayments on the loan. This is based on income and affordability. Therefore, proof of income & expenditure will be required to support the amount of borrowing applied for.

The minimum RIO loan that Hodge will accept is £20,000, upto a maximum mortgage amount, which is the lower of - £1.5m or 70% of the property value, or the amount that is deemed affordable based on the individual circumstances of the homeowner(s). This will usually be qualified by your equity release adviser with access to Hodge’s online calculation tools and Decision in Principle verification.
Please contact us directly for your Hodge 50+ RIO Mortgage quote via Equity Release Supermarket on Freephone 0800 802 1051.

Eligible streams of income include employment, investment and rental incomes and pension earnings. If the application is joint, then Hodge will carefully underwrite on the basis that any 2nd party must maintain affordability in their sole name. Additionally, if employment income is used, then affordability must be proven once this source of income ceases.

Adverse credit such as arrears, defaults and CCJ’s are acceptable, dependent upon the amount, longevity and level of credit registered. Please contact the Equity Release Supermarket team on 0800 802 1051 to check for eligibility.

For a property to be eligible on this RIO Mortgage product, it must be located in England, mainland Scotland or Wales and it must be lived in permanently by the homeowner. The property must have traditional construction and be in sound condition for lending purposes as evidenced by an independent surveyor appointed by Hodge Lifetime.

Features

With the Hodge 50+ RIO mortgage, the homeowner pays the interest charged on the loan each month. The amount available to the borrower is directly related to their income and affordability.

There is no maximum term for the Hodge 50+ RIO Mortgage as it will run for the duration of the last surviving homeowner. There is no need for any repayment strategy such as endowment, investment or repayment basis. The loan is an interest only lifetime mortgage with no end date set.

Unlike equity release schemes, there are no protections in place with this mortgage product if the borrower has difficulty making payments. This is a standard residential mortgage which means that there are no safeguards if something unexpected takes place, preventing the homeowner from being able to make payments. So, to make use of this product, homeowners must be confident that their income will stay sufficient & constant enough to meet their payment obligations.

The homeowner must make all monthly interest payments as they fall due until the RIO mortgage finishes. This means that the homeowner could put their home at risk if they do not keep up with payments.
If a single applicant passes away before the end of the term, the mortgage will still have to be repaid, usually by sale of the property. On joint applications, the mortgage will continue in the name of the survivor.

Early repayment charges (ERC’s) are always fixed under the Hodge range of RIO Mortgages. Early repayment charges are fixed for the length of the specific fixed or variable term offer (e.g. 2 or 5 years).

Options

Additional borrowing may be available with Hodge’s 55+ RIO Mortgage, but availability and approval is not guaranteed. The amount available is directly related to the homeowner’s ability to afford the higher loan amount and will therefore go through the same affordability verification process.

The mortgage can also be transferred to a new home as long as there is adequate security for the mortgage.

The Hodge 55+ RIO Mortgage comes with a variety of fixed and variable interest rates. The rate illustrated above is a 5-year fixed rate mortgage. Contact the Equity Release Supermarket team on 0800 802 1051 for all the latest interest rates on offer.

Practicalities

The Hodge 55+ RIO Mortgage is ideal for the homeowner who wants to only make monthly interest payments over their lifetime and are happy to provide proof of affordability. With this product, the homeowner is able to simply make interest payments only for the rest of their life.

RIO mortgages will ensure the balance will always remaining the same as it started, assuming repayments are maintained. This strategy is ideal for those looking to protect and maximise their inheritance, or looking to retain as much capital as possible for taking equity release at a later date.

RIO’s can prove useful for homeowners who aren’t quite ready for equity release, and would prefer to take themselves to a point in the future when they feel they are a better age, or wish to stop making repayments.

Alternatively, where homeowners can’t get a mainstream mortgage, or even where an interest-only mortgage needs repayment, the Hodge Lifetime RIO mortgage can provide an excellent solution.

Another concept for these RIO mortgages is that Hodge are effectively offering an interest-only bridge facility into retirement. Maybe this is to a certain point where a repayment vehicle becomes available, such as a tax-free lump sum from their pension, or drawdown by crystallization of pension funds.

*applies to solicitors fees & standard disbursements if using Hodge solicitors
**Rate shown is a 5-year fixed rate RIO Mortgage

To obtain further information or to request a quotation on the Hodge 55+ RIO Mortgage - 5-year fixed rate, please contact the Equity Release Supermarket team on Freephone 0800 802 1051.

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Hodge 50+ RIO Mortgage - 2 Yr Fixed Rate & Details

RIO - 2 Yr Fixed (fee free) (75% LTV)

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Background

Eligibility

Features

Options

Practicalities

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