Hodge Bank Breaks Age and Deposit Barriers with New 95% Retirement Mortgage
In a significant move for the later-life lending market, Hodge Bank has launched a mortgage product that allows borrowers aged 50 and over to secure a home with just a 5% deposit, with no maximum age limit at the end of the term.
The product, part of their specialist Resi Retire range, directly addresses two of the biggest hurdles faced by older borrowers: accumulating a large deposit and securing finance that extends into retirement. This announcement is set to open up homeownership opportunities for a demographic often overlooked by high-street lenders.
Key Features of the Proposition:
95% Loan-to-Value (LTV): Requires only a 5% deposit, making it one of the few retirement mortgages available at this high LTV.
No Maximum Age Limit: The mortgage can extend indefinitely, provided the borrower can demonstrate affordability. This is crucial for those already in retirement or with long-term mortgage plans.
Available for the Over-50s: Specifically designed for borrowers who are at or near retirement age.
Interest-Roll Up Option: A key feature for affordability, this allows borrowers to service the interest on their loan by adding it to the overall mortgage balance, rather than making monthly payments. This can be a solution for those with significant equity but a lower retirement income.
A Solution for a Growing Need
The product is expected to appeal to a range of borrowers, including:
Later-life buyers looking to downsize but who haven’t built up a large cash savings pot.
Individuals entering retirement with an existing mortgage who need to remortgage but find their options limited due to their age.
Those who have experienced a change in circumstances, such as divorce, and need to get back on the property ladder later in life.
“While the high-street banks often retreat at the first sign of a pension statement, specialist lenders like Hodge are filling a vital gap,” commented Tom Collier for Advantage FS.
