Hodge Lifetime – Lump Sum Lifetime Mortgage

The Lump Sum Lifetime Mortgage offered by Hodge Lifetime offers homeowners a lump sum up-front payment in the form of a mortgage loan. This loan is taken against the security of the home and uses the home equity saved up in the property.

This particular lifetime mortgage offered by Hodge Lifetime has some unique features. As with most equity release schemes Hodge do not require any monthly repayments on the loan. Instead, the borrowed amount of the loan, along with any and all accrued interest is due when the home is eventually sold. The money from the sale of the home is used to pay back the debt and this sale typically takes place when the homeowner has either moved into permanent long term care or has passed away.

While many lifetime mortgages operate similarly, the Lifetime Mortgage offered by Hodge Lifetime does have some unique features. These features include the following:
• Downsize protection: This protects those homeowners who move from their home at least five years after they have taken out their lifetime mortgage. If after five years, the homeowner sells their home and pays off their loan, they will not incur any early repayment charges.

• Flexible Repayments: Unlike many other lifetime mortgages, this product allows homeowners to pay up to 10% of the original loan amount to be repaid each year without incurring any early repayment fees or charges. These payments can occur every year and can start on the first anniversary of the lifetime mortgage. These 10% repayments can continue until a £10,000 balance remains.

The Hodge Lifetime Lump Sum Lifetime Mortgage does have eligibility criteria. In order to qualify homeowners must:
• Be located in Wales, Scotland, or England.
• Youngest homeowner must have a minimum age of 60
• Must have a home that is of traditional construction

For those homeowners who have a property that is a leasehold, there must be at least 90 years left on the leasehold in order to qualify.

Hodge Lifetime does offer the benefit of a no negative equity guarantee with their lifetime mortgage. That means that if the home sells for less than what is owed, the estate will not be held in the negative, provided that the home was sold for the best reasonable price.

While many lifetime mortgages operate similarly, the Lump Sum Lifetime Mortgage offered by Hodge Lifetime does allow for some unique features, especially the payback options. This option alone allows homeowners to decrease the amount they will eventually owe back to the lender once the home is sold.