Posted on 18 April 2016 by Philip
"I read John Charcol now offer over 55+ mortgages. Can you please provide me with more detail on this product please?"
Thank you for your enquiry via our ‘Ask the Experts’ section of our website.
The Hodge Lifetime 55+ Mortgage is accessible through select mortgage brokers, John Charcol being one of these. The amount you can borrow is based on your ability to afford the mortgage, based on your income and expenditure subject to a maximum loan to value ratio of 60% of your property value.
The 55+ Mortgage is an interest only mortgage available to borrowers aged 55 and the oldest you can be at application is 85. You must have suitable arrangements in place to repay the capital at the end of the term. Acceptable repayment strategies could comprise of downsizing, sale of another property or sale of other investments such as stocks or shares
At the time of writing there are three rates available for the 55+ Mortgage currently: a two-year fix at 3.49%, a 3.95% five-year fix, and a two-year discounted-rate deal with a pay rate of 3.3% (the standard variable rate is currently 4.2%).
Although not knowing your full financial position, it would appear, based on the information you have supplied that this something we can help you to explore further. However, it is also possible that we can also approach other lenders that allow a maximum age of between 75 and 80 years at the end of the mortgage term, there are some who will consider higher than this.
The actual term of the new loan may be restricted by the age at wish you intend to retire, or your ability to continue servicing the loan into retirement if you should wish to do so. All lenders assess income and expenditure differently so having the correct figures is imperative. There are some niche lenders available on the market who can manually underwrite a mortgage based on sustainability and they may be prepared to lend based on your individual circumstances and requirements.
To enable me to provide you with a definitive answer we would need your full financial details. I recommend that you contact a consultant at John Charcol who will be able to recommend the most suitable solution for you whether it be the Hodge 55+ Mortgage, or an alternative solution.
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Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They 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.
We recommend you seek professional advice with regard to any of these topics where appropriate.