Hodge slashes retirement mortgage
The rate previously stood at 4.75%
Deian Jones, managing director of Hodge, said: “As options for customers looking to borrow in retirement have reduced, especially on an interest only basis, this latest rate reduction offers advisers a competitive and flexible solution for those customers”
On Hodge’s retirement mortgage interest is paid monthly, however the full loan capital only needs to be repaid once the property is sold and the borrower dies or moves into long-term care.
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 help 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.”