55+ Mortgage product summary
What are our current interest rates and early repayment charges?
|55+ Mortage and 55+ RIO Mortgage|
|2yr fixed||5yr fixed||2yr discount|
|Current interest rate|
|55+ Mortgage||3.50% fixed||3.90% fixed||3.44%|
|55+ RIO Mortgage||3.59% fixed||3.99% fixed||3.35%|
Your payments will not change during the first 2 years
Your payments will not change during the first 5 years
Your payments may change at any time in line with changes to our SVR
|All product options revert to our current SVR at the end of the discount or fixed rate period.|
|Current SVR||Our SVR is currently 4.45% variable.|
This example is based on a £90,000 loan over a 20 year term at an initial rate of 3.90% fixed for 5 years. In this case, the product fee has been added to the loan, and the valuation and legal fees have been paid by Hodge Lifetime:
Please refer to our Tariff of Charges to identify any future fees or charges you may incur.
|Early repayment charge||
Year 1: 3%
Year 2: 3%
Year 1: 5%
Year 2: 4%
Year 3: 3%
Year 4: 2%
Year 5: 1%
Year 1: 3%
Year 2: 3%
What are the main features?
|55+ Mortgage||55+ RIO Mortgage|
|Mortgage type||Interest-only Mortgage|
|Loan purpose||House purchase, re-mortgage or raising capital.|
|Loan term||Minimum term: 5 years.
Maximum term: Up to youngest borrower’s 95th birthday.
|Loan repayment||Loan interest is payable on a monthly basis.|
|You must repay the loan capital at the end of the term using one of the below repayment vehicles.||Loan capital is repaid on death or entry into long term care.|
|Acceptable repayment strategies
(Applicable to the 55+ mortgage only)
You are permitted to combine more than 1 repayment strategy.
There remains a risk that, if your repayment strategy does not perform in line with your expectations, it may not be sufficient to clear your loan in full.
The loan must be affordable for the entire term.
If the loan term extends beyond your retirement date, this means you will need sufficient retirement income to continue to afford the loan.
|Minimum property value||£120,000 (require £100,000 minimum equity)||£100,000|
|Maximum property value||£3,000,000|
|Maximum loan to value||60%|
|Overpayments||10% overpayment allowance available during the initial period|
|Location||England, Scotland and Wales|
|Buildings Insurance||You must keep your property insured during the term of the mortgage, but you do not have to buy this insurance through Hodge Lifetime.|
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.Next Page: Using an adviser