Hodge ER Plans
The concept of equity release has been around for 25 years, but originally it was not trusted. We are a nation who believe in owning their own home. Having said that, equity release has become increasingly popular. 350,000 homeowners have taken advantage of equity release of their home that totals over £17 billion in loans.
The great thing about owning your own home is the security that comes with the equity in the property. The frustrating thing is, often that equity is only released if you sell the property or your family benefit once you have passed away. In today’s tough economic times, pensions are not stretching as far as we would wish, many people would be choosing to downsize or take lodger just to survive.
That’s what a lifetime mortgage offers. It gives you the access (to the equity in your home) without putting your home at jeopardy. Which is vital for retired homeowners, they need stability.
Hodge Lifetime offers a selection of equity release products, including lifetime mortgage. There are no monthly repayments required throughout the lifetime of the loan. That means once the equity is released, you don’t have any other financial obligations until you pass away or go into long term care, and the final repayment is due.
The key to Equity Release Scotland is that you will always own your own home. At no point is that ever in jeopardy. You could literally live to well over 100 years old and never have to worry about your home. Only when you (and your partner if it’s appropriate) have passed away, or have entered long-term care, will you be expected to make a full repayment on the loan.
As it’s still your home, when you pass away, the property becomes part of your estate and it’s your solicitor who will be responsible for selling the home, at full market value, making the repayment of the home, and passing on any inheritance to the relevant people in your will.
For many people in Scotland, life is difficult. Pensions don’t stretch as far as they used to. For this reason, more and more people of retirement age are taking advantage of the equity in their home. Now you have the opportunity to take equity in stages or as a lump sum and it doesn’t tie you down. You’re able to put some money aside for inheritance (although not all obviously, that’s the nature of equity release) and in many situations, you can even move home, as long as you meet some simple criteria in your new home.
As part of Julian Hodge Bank, Hodge Lifetime have been around since 1965, working specifically in offering retirement financial solutions and products. They are multiple award winners, winning the much coveted Mortgage Solutions “Equity Release” Award as well as winning the moneywise award for innovation for the last two years.
As a member of the Equity Release Trade Body, Hodge lifetime have been a major player in Equity Release in Scotland for over 50 years and that experience matters a great deal when looking at releasing equity when in retirement. You don’t need any nasty surprises, you want a company that have a long track record at delivering these kinds of mortgages and that’s exactly what Hodge Lifetime offer. Peace of mind.
The amount of equity you can release is really dependent on your unique situation. When you make an application, your age, value and type of property that is having equity released against, all that will have a bearing.
With Hodge Lifetime, they’ll be able to sit down with you and go through your options, so you are armed with the information you need to make a decision that works best for you.
At Equity Release Scotland, we’d like to be able to give you more specific details on the interest rate you’d be able to receive, but similarly to the amount of equity you are able to release, it’s very much dependent on your personal circumstances and the current interest rate at the time of taking out your lifetime mortgage.
Generally speaking, the interest rate for a lifetime mortgage will be higher than a traditional or standard mortgage. This is for 2 reasons:
There are fees with every lifetime mortgage and Hodge Lifetime is no different. Your advisor will walk you through them, there won’t be any hidden surprises, you’ll know exactly what they are and indeed, they’re very similar to standard mortgage fees.
Valuation Fee – This is the cost of having your home valued to determine how much equity is able to be released. It’s paid at the application stage, normally by cheque.
Arrangement Fee – With every mortgage, there is an arrangement fee. This is a fee paid upon completion of the mortgage, although you are able to pay upon application if you prefer. The benefit of having it paid upon completion is that you are able to include it into the loan.
On top of these fees are your own solicitors fees, which are standard with all mortgages and will be determined by the solicitor you choose to work with and have represent you.
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You have the Right to Remain in your Home for as long as you choose
You will NEVER owe more than the value of your home due to the "no negative equity" guarantee.
You have the freedom to move to another property without financial penalty (subject to provider criteria)
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