Retirement Mortgage product summary

What are the main features?

Hodge Lifetime Retirement Mortgage
Mortgage type Lifetime Mortgage
Product benefit To provide a tax free cash lump sum.
Affordability assessment Loan interest is repaid on a monthly basis. The loan must be affordable based on your current or projected pension income.
Current monthly interest rate

4.05% fixed for 2 years, reverting to SVR thereafter.

4.45% fixed for 5 years, reverting to SVR thereafter.

Current Standard Variable Rate ("SVR") 4.70% variable
Overall cost for comparison

5.00% APR for 2 year fix

5.00% APR for 5 year fix

The actual rate available will depend on your circumstances. ask your Financial Adviser for a personalised illustration.

Additional features

Interest roll up option – When the youngest borrower reaches age 80, or after the 5th anniversary of taking out the loan (if later), you can choose to stop paying the interest on the mortgage, and add it to the loan instead.

Flexible Repayment Option - During the first five years, you are entitled to make overpayments of up to 10% of the initial loan amount each year without incurring any early repayment charges. If you repay more than 10%, early repayment charges apply on the whole amount repaid in that year. Any unused capacity cannot be carried over to future years. No early repayment charges apply after five years.

No Negative Equity Guarantee (“NNEG”)

Provided that you keep making interest payments when they are due, if the sales proceeds of your home are not sufficient to repay the amount we lent you, this will be covered by the No Negative Equity Guarantee and no further sum will be payable by you.If you exercise the Interest Roll-up Option, the interest added to the loan each month will also be covered by this guarantee.

Minimum age
(youngest applicant)
Maximum age
(youngest applicant)
Minimum Property value £100,000
Maximum property value

£1,000,000 (outside London)

£2,000,000 (London and designated high value areas)

Maximum Loan to value
  • Age 50 to 70: 52%
  • Age 71 to 75: 47%
  • Age 76+: 42%

The actual loan amount will be determined based on an affordability assessment

Minimum loan £20,000
Maximum loan £750,000
Arrangement fee £995
Early repayment charge
  • 2 year fix (of capital repaid):
  • Year 1: 3%
  • Year 2: 3%
  • Year 3 onwards – no early repayment charge is payable

  • 5 year fix (of capital repaid):
  • Year 1: 5%
  • Year 2: 4%
  • Year 3: 3%
  • Year 4: 2%
  • Year 5: 1%
  • Year 6 onwards – no early repayment charge is payable
Location England, Wales, mainland Scotland

This is a lifetime mortgage. To understand the features and risks, ask your Financial Adviser for a personalised illustration.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Next Page: Eligibility