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Hodge introduces day-one ERC-free downsizing and cuts rates

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  • 24/06/2019
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Hodge introduces day-one ERC-free downsizing and cuts rates
Hodge Lifetime has introduced downsizing protection to its lump sum and flexi products.

 

The downsizing protection will allow borrowers the option to sell up and repay their loan with the proceeds of the sale with no early repayment charges (ERCs) from inception of the loan.

The lender said that to incorporate greater flexibility it will now offer the option of eight-year fixed ERCs, after research undertaken found fixed ERCs were in the top three options requested by customers.

Rates have been cut to start at 3.54 per cent with survey fees also being reduced.

It has also extended the maximum loan to value available to borrowers to 52 per cent and introduced a fee-free option which will come with a higher interest rate.

 

Changing retirement needs

Matt Burton, managing director of mortgages for Hodge said the lender was evolving its product range to suit changing retirement needs.

“The equity release market is going from strength-to-strength – Key’s Market Monitor for Q1 2019 reports an incredibly strong start to the year with £840m worth of equity released, up six per cent year-on-year,” he said.

“We are making changes in direct response to feedback we’ve had from customers and advisers and will give customers far more flexibility, something we think is essential for mature borrowers.

“Downsizing Protection from day one is something no one else is doing but something we think will really help our customers as we found the most common reason customers repaid their mortgage was due to selling their home,” he added.

 

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