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Hodge Lifetime cuts rate on retirement mortgage

by: Emma Lunn
  • 10/02/2015
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Hodge Lifetime has reduced the interest rate on its five-year fixed retirement mortgage by 36 basis points to 4.39%.

The retirement mortgage is an interest-only lifetime mortgage. Whilst interest must be paid monthly, the loan capital can be repaid from the proceeds of selling the property and does not have to be repaid until the borrower dies or moves permanently into long term care.

Deian Jones, managing director of Hodge Lifetime, said: “With this latest rate reduction, the retirement mortgage offers advisers a competitive solution for their customers requiring interest-only borrowing into their retirement and is a flexible alternative to traditional equity release.”

Dominik Lipnicki, director of Your Mortgage Decisions, said: “Post-2008 and in particular post MMR, it has become nearly impossible to help clients past retirement, especially if interest only borrowing is required.

Hodge Lifetime helps to fill that product void. What most would find surprising is just how low the interest rate is, even lower than the SVR with Santander. This is no longer what some would perceive as lending of last resort. Hodge Lifetime products plug a real gap in the market; in essence, they help borrowers, which high street lenders chose to ignore.”

 

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