Did you know, Hodge can help your clients make the next years their best years?

By James Enos, National Account Manager

We know only too well at Hodge that those living in their later life want financial security. But they want more than that, our research shows that our 50+ clients want to plan for the future, safe in the knowledge that they’ve made sound financial decisions that will benefit their later life and their future assets.

Life certainly doesn’t stop when you reach 50, as lenders and brokers we have a fantastic opportunity to help our clients enjoy their later life years.

Maybe they are taking on a project like a home renovation or gifting to a family member and they haven’t found many financial options designed to suit them? Or perhaps they’ve got an existing mortgage to switch from, want to minimise their monthly payments, or free up funds to make home improvements but aren’t sure how?

We can help make their next year’s become their best years, with a range of products created with them in mind.

Our residential mortgages are designed for borrowers aged 50+ looking for a mortgage in later life or seeking alternatives to traditional equity release.

With a choice of residential mortgage packages, your client can opt for the product that suits them best:

  • A choice of fixed term up to 41 years (50+ Mortgage) or no end term (RIO Mortgage)
  • Both products are interest-only residential mortgages that can be used for purchase or re-mortgage
  • 2 or 5 year fixed rates or 2 year discount, reverting to SVR
  • Both mortgages offer a 75% LTV
  • Available in England, Wales and mainland Scotland

Both products offer added flexibility through our option to overpay by up to 10% as well as our Early Repayment Promise, meaning if your clients sell up and choose to repay from the proceeds no ERC’s will apply.

The 50+ Mortgage:

Specifically designed for people over the age of 50, who find mainstream mortgages either unsuitable for their particular needs, or not available due to age or income type.

For the term of the mortgage, your client will only pay interest on the amount they borrow, paying back the capital at the end of the term using a suitable repayment vehicle such as property sale or cash in of investments or assets. This could mean lower repayments and more financial freedom, which is a hugely attractive proposition for those in their twilight years.

The fixed term duration means they can match the term of the loan to their future plans, such as retirement, by picking a duration they are comfortable with and our flexible approach to underwriting means we will take an individual approach, considering income from both employed and self-employed as well as retirement income. We can potentially lend up to 6 times income for a like for like remortgage and can consider a younger second applicant if you main applicant is 50 or over.

The RIO Mortgage:

For older borrowers who can afford to make monthly interest payments, and who’d like the peace of mind that their mortgage is in place for life.

Our RIO mortgage range is flexible and might suit your client even if they’ve ruled out similar options in the past. With a Hodge RIO mortgage, as with the 50+, the client can borrow up to 75% of the value of their home and only need to pay back the interest each month.

This allows them to unlock value in their home to do things like pay off debts, support family members, fund their lifestyle, make home improvements, or even go on a dream holiday.
Our flexible approach to underwriting and income still applies and if RIO doesn’t fit, we have the option of considering 50+.

Research carried out by us into intergenerational spending found that those in their 50s are still working and leading active lifestyles well into their 60s, and people are living much longer thereafter. Most don’t start the active planning stage until they are in their mid-60s.
With our mortgages, we can help you show your clients that they can make the next years the best years with sensible financial planning. Our products allow those entering their later life to have financial security but also have the fun they desire.

Hodge business development director Emma Graham says: “We’re always looking at ways to adapt and improve our specialist proposition to provide brokers with further options in the over 50s lending space. In particular, we’re pleased to be offering a 75% LTV across our RIO products as there are only a limited number of lenders currently serving this area of the market.

“After a year like no other, people are facing big changes in their financial circumstances – good and bad – so flexibility has never been more important.”

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