Homeowners at or in retirement will be pleased to learn that a new Interest Only Retirement Mortgage has been introduced by Hodge Lifetime giving the opportunity of releasing up to 50% of the equity tied up in their homes. The Plan is unique for an equity release plan in that the amount which can be raised is based on affordability, not just age and property value. In the assessment of affordability, the maximum release is related to retirement income including both state and private pensions.
This Lifetime Mortgage Plan offers the following benefits and options:
- A low interest rate which is fixed for 5 years
- Transparent and predictable early redemption charges
- No capital repayments until you vacate the property
- The option to make overpayments (subject to plan limits)
- The option to switch to a new fixed interest rate after 5 years
- The option to repay in full after 5 years with no penalty
- The option to roll up interest from age 80
As with traditional residential mortgages, the home may be repossessed if the payments on the mortgage are not kept up.
Further good news has been the announcement of a new roll up Lifetime Mortgage plan offering higher loan to values
This Plan from another leading equity release provider (Just Retirement) takes into account medical and lifestyle conditions, giving people aged 60 and over the potential to borrow an even larger amount.
The Lump Sum Plan offers:
- Enhanced loan to values for adverse health and lifestyle conditions
- No capital or interest payments until the property is vacated
- Equity Release Council/SHIP safeguards
- The provider believes that their Plan will be particularly useful for:
- Repaying debts such as an interest-only mortgage.
- Making major home improvements.
- Helping relatives get on the property ladder.
The above Plans can only be accessed via a regulated Equity Release advisory firm. Equity Release may not be suitable for everyone and in order to make certain that the most suitable plan is selected, it is important that independent financial advice is sought from a specialist equity release adviser firm like Bower.