The 55+ Mortgage: a flexible way to borrow money in later life
Written on 9 May 2016 by
New 55+ Mortgage - a massive shot in the arm for the mature borrower market
If you thought you were too old to get a mortgage, the 55+ mortgage from retirement specialist Hodge Lifetime could provide the solution to your mortgage problems.
As the name suggests, the 55+ Mortgage is exclusively for those aged 55 and above. The product is standard mortgage where you pay the interest on the loan each month and retain 100% ownership of your property.
Unlike a lifetime mortgage, where the loan lasts for the rest of your life, with the 55+ Mortgage you select the term over which you want it to last. This allows you to match the term of the loan to your future plans. John Charcol have been working with Hodge Lifetime for a number of years and are just one of a few selected mortgage brokers to offer this unique product to the market.
How is income assessed for the 55+ Mortgage?
As part of the assessment process for the 55+ mortgage Hodge lifetime will take a number of different sources of income into account. These sources of income include:
• Income from employment or self-employment
• State, personal and company pensions, whether in payment or not
• Investment income
• Rental income on a buy to let properties you may have
What happens at the end of the mortgage term?
At the end of your mortgage term you have to be in a position to repay the loan. To do this during the application process Hodge Lifetime ask you to identify your repayment strategy. This can include:
• The sale of your property when you downsize;
• The sale of other property that you own;
• The sale or maturity of your investments, including any endowments or lump-sums you are entitled to when taking your pension
Ray Boulger, product technical manager at John Charcol, says:
“As we’re living longer and having to work longer, then, by extension, we’re likely to want to borrow for longer, too.
“Yet these experienced borrowers – whose credit records are likely to be exceptionally good – have, in the main, been ignored by the major high street lenders. The Hodge Lifetime 55+ Mortgage will help bring more competition into this extremely underserved sector.”
For more information on the 55+ Mortgage please contact our experts below:
The blog postings on this site solely reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.