Throughout the past 12 months, at Hodge we’ve focused on ways that we can open up later life lending in the mainstream mortgage sector.
We’ve added to our residential mortgage range and launched the 55+ RIO (Retirement Interest Only) Mortgage. The 55+ RIO can be sold by mainstream advisers and was the first to offer interest only borrowing from age 55 with no end date. The capital is repaid on death or entry into long term care (or should they choose to sell at some earlier stage).
With 60% LTV’s, a choice or rates and fixes and either 2 or 5 year ERC’s our mortgages provide a solution for older borrowers that previously had no choice but to sell up and downsize.
We’ve been able to use our later life expertise to underwrite these mortgages using income from both pre and post retirement. We understand there’s no longer a ‘typical’ retirement or retiree and having been part of the later life market since 1965, we use our knowledge to provide a common-sense approach to underwriting, working with the adviser to achieve the best possible outcomes for their customer.
Where RIO doesn’t fit, our 55+ mortgage might, another of our residential mortgages but with a term from 5 years up to age 95. We work closely with the adviser wherever possible to find a positive outcome for the customer and our knowledge and expertise in the sector allows us to do this in a way many other providers simply could not.
With so much media focus on interest only maturity and the lack of available solutions for older borrowers, we believe our offering avails specialist solutions with great customer outcomes. We understand we are a nation of people living longer and working later, we believe older customers should be treated as a segment of the market to be served and served well.
Our expertise and thirst for innovation means we offer a number of products that allow us to stand out. We strive to understand the requirements of todays over 55 consumer and offer a range specialist products and solutions in a market that many lenders are still reluctant to serve.
We’re the only lender operating in both mainstream and equity release markets exclusively via intermediaries. Our view is that later life lending advice should start at the mainstream end of the market and potentially transition through to equity release as an eventual exit for the customer. We believe intermediaries are at the heart of giving good advice whatever their particular specialism.
As founder members of SHIP and having been a part of the later life market since 1965, our expertise allows us to create and shape products that attract a whole new type of customer. We feel meeting later life lending needs means a broader range of options for borrowers – right person, right product, right advice and we continue to be dedicated to driving innovation in our sector, reacting to adviser and customer demand.