Borrowers need more flexibility during these uncertain times
Emma Graham, business development director for Hodge, explains how the Hodge Early Repayment Promise could help older borrowers who are considering whether to re-mortgage or sell up and move house.
When the housing market re-opened in England, demand for homes rose by 88% according to Zoopla’s UK Cities House Price Index (April 2020, published 27 May 2020). With millions of UK households having spent a considerable amount of time in their homes during lockdown, it’s not surprising that many will be re-evaluating what they want from their home going forward.
For others however, the economic uncertainty that’s come with Covid-19 including the 8.4million people who have been furloughed, will mean that their ability to move home will be limited for the foreseeable future. A recent consumer survey for Zoopla found that 41% of those searching for a home before Covid-19 have now put their search on hold because of the crisis.
Covid-19 and the housing market
With many predicting the housing market will experience a fall of around 3-5% this year, followed by bounce back of 5% in 2021, - for borrowers who were hoping to move home when their current mortgage agreement comes to an end this year, they might be left unsure as to what to do.
Re-mortgaging for another two or more years and the early repayment charges which can be incurred could feel like too much of a constraint, equally continuing on a variable rate whilst they decide what to do may also not be financially viable.
Options for later-life borrowers
For 50+ borrowers in this predicament, re-mortgaging with Hodge could be the ideal solution. Our Early Repayment Promise across our later life products, allows home owners to sell and move out of their home, pay off their mortgage completely without any early repayment charges.
There is no introductory period or length of time the borrower needs to have a mortgage with us before the Hodge Early Repayment Promise applies, which gives them total flexibility should they decide to sell their home and move when either their financial predicament improves or they have more confidence in the housing market.
If a customer wants to re-mortgage before their fixed term is up, or switch to another lender, then early repayment charges would still apply.
If you have a customer who this could help, just get in touch with our lending support team. Hodge offers one of the widest ranges of later-life lending solutions, which means you can offer your customers flexibility. When you put that together with the Hodge Early Repayment Promise, we’re confident we can help you find an ideal solution for your 50+ customer.