Flexible Mortgage Option
Summary of Current Charges
Interest Rate:
Interest rates are based on prevailing market conditions. The interest rate for the Flexible Mortgage Option Plan is fixed at outset and will not change throughout its term. The interest rate for withdrawals from the Cash Reserve will be the same as the rate being offered to new flexible mortgage customers, and will remain fixed at this rate throughout its term.
Application Fee:
An application fee will be deducted from the cash sum paid to you on completion. A firm of solicitors will act for Hodge Equity Release in arranging this lifetime mortgage. Any charges for this are included in the application fee.
Broker Fee:
Your Broker will advise you of any fee payable, and whether or not it is refundable.
Valuation Fee:
At application stage, you will be asked to pay towards the cost of property valuation. Your contribution will depend on the estimated property value. Once a survey inspection has been made, there will be no refund of fee, even if the application is not completed.
If you apply for additional borrowing, the cost of revaluation will be your responsibility.
Legal Fees:
Legal fees and costs charged by your own solicitor are your responsibility, even if the plan does not complete for any reason.
Your Guarantee against “Negative Equity”
You will never owe us more than your property is worth. This guarantee is free of charge.
Early Repayment Charge:
An early repayment charge of 5% of the capital amount repaid will apply during the first five years of the loan, and 1% in years 6-10.
Other Costs:
If it should be necessary for Hodge Equity Release to take over the sale of the property, any costs involved would be charged to the plan holder.
Property values:
An increase in the value of your property would offset the effect of the interest charged on your loan. The lifetime mortgage loan and interest, together with all costs and charges due to Hodge Equity Release, are taken from the sale proceeds at the time your property is sold. The amount which remains to you, or your beneficiaries, will depend on house prices at the time and sale proceeds received when your house is sold. Past performance of property prices should not be taken as a guide to the future. In addition, regional house price variations should be considered.
APR:
The Annual Percentage Rate defines the cost of obtaining credit. The APR takes into account the total interest payable for the term of the lifetime mortgage loan, and all other payments and charges which the customer is required to make in respect of the loan. All lenders use a common formula so that comparisons on rates can be made between lenders. The APR will depend on the personal details for the borrower, the charges, the interest rates and the term of the loan.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
We recommend that you enlist the help of an authorised Financial Adviser and, if you wish to proceed, ask your solicitor to explain the legal implications of the Lifetime Mortgage Option.