At Hodge, we believe lending should be more flexible. Whether you’ve got an existing mortgage to switch from, want to minimise your monthly payments, or free up funds to make home improvements, our 50+ Residential Mortgage was created with older borrowers in mind. It means you can enjoy the financial freedom you deserve while approaching retirement.
What is a 50+ Residential Mortgage?
Our 50+ Residential Mortgage is an interest only mortgage for your main residence, with a fixed term duration, for customers aged 50+. During the term of the mortgage, you’ll only pay interest for the amount you borrowed, and you’ll pay back the full amount borrowed at the end of the term. This could mean lower payments and more freedom in the short term.
The fixed term duration means that you can match the term of the loan to your future plans, such as retirement, by picking a duration you’re comfortable with.
Choosing a 50+ Residential Mortgage means you have to be in a position to repay the loan at the end of the term. This is why it’s important to have a repayment strategy in place that allows you to repay the full loan when the time comes. This may include:
- Sale of your property when you downsize.
- Sale of other property that you own.
- Sale or maturity of your investments, including any endowments or lump-sums you’re entitled to when taking your pension.
You can choose one, or a combination, of the repayment options above. Make sure you discuss your options with a financial adviser before deciding which one suits your financial position better.
Benefits: at a glance
You get a financial solution catered for your particular life stage
You get to keep equity in your home
You can choose the loan term you’re comfortable with
Take advantage of our Early Repayment Promise
The Hodge Early Repayment Promise gives you peace of mind, knowing if something happens which means you need to sell your property and move out, you won’t be penalised by early repayment charges – giving you one less thing to worry about.Find out more
Is 50+ Residential Mortgage right for me?
This residential mortgage is specifically designed for people over the age of 50 who find mainstream mortgages either unsuitable for their particular needs, or not applicable due to age limitations. If you’re over 50 and interested in a new mortgage on your main residence, here are the eligibility criteria we take into consideration.
How much you can afford to repay each month is essential for any type of mortgage loan, but it’s even more important when it comes to our 50+ Residential Mortgage. Considering the full amount borrowed is due to be paid at the end of the term, we need to make sure the loan remains affordable for you not only today, but also in the future. We’ll take a number of sources of income into account in assessing your ability to afford the loan, including:
- Income from employment or self-employment
- State, personal and company pensions, whether in payment or not
- Investment income
- Rental income.
A financial adviser will be able to assess if this is the right financial solution for you. It’s important to consult one before making up your mind.
Find an adviser with unbiased
We don’t offer 50+ mortgages directly to the public. It’s a big decision, and you’ll need to speak to a financial advisor to make sure it’s the right one for you. If you don’t already have an adviser, you can start your search, using unbiased.co.uk.Find a broker
Frequently Asked Questions
You can repay the loan at any time, but you might incur early repayment charges if you do – depending on the circumstances.
We try to be as flexible as we can, and we understand that things don’t always go to plan. That’s why we’ve created our Hodge Early Repayment Promise, meaning you won’t have to pay any early repayment charges if you move out of your home, and pay the mortgage off in full.
Hodge is a responsible lender, so if your circumstances change then please contact us to find out the best way forward.
Our 50+ Mortgages are portable, which means they can be transferred with a house move if you wish to move or downsize. As the borrower, you’ll be responsible for the cost of transferring your mortgage, and your new home must form suitable security for the loan.
Remember too, that making your monthly interest payments could impact future income levels needed to fund retirement. We encourage you to discuss retirement plans with your financial adviser to make sure you can accommodate any changes to circumstances.
If marital status changes too, we can accommodate this too.
We review the SVR regularly. The SVR may change to reflect changes in the Bank of England base rate or changes to our funding or administration costs, economic effects and the impact of new laws or regulations. If there are changes, we’ll provide you with reasonable notice of what’s changing and how it may affect you.
We can lend a maximum of 75% loan-to-value, meaning 75% of the value of the property, with loans from £20,000 to £1,500,000. We want to make sure the 50+ Residential Mortgage remains affordable now and in the future. This is why we base the final amount we’ll lend on your ability to afford the loan. This includes your employment income (including self-employed) and retirement income that’s currently being paid, or forecast to be paid upon retirement. We’ll also look at outgoings including any loans or financial commitments already in place.
For the 50+ Mortgage, it’s essential for the repayment strategy to offer you sufficient funds to repay the loan at the end of the term. This is why consulting with a financial adviser is important before deciding which mortgage product is best for your financial situation.
You can take out our 50+ mortgage either solely, or with someone else. We look at a wide range of income types (like pension, investments, and rental), and your adviser will be able to help you work out the best course of action. We look at all applications on a case by case basis, and try to be as flexible as we can.
Yes. All of our mortgages are only available through Mortgages Advisers. If you don’t have an adviser, you can use unbiased.co.uk to start your search.
The main difference between a 50+ mortgage and a RIO is that, with a 50+, you pay the interest as you go and need a repayment strategy for when your mortgage ends.
This means that with a 50+ mortgage, as long as you’ve kept up with your payments, the final amount you owe us will always be the same as the amount you initially borrowed, regardless of whether your home goes up or down in value.