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28th April 2022

Is Hodge Equity Release Something You’ve Heard About? Is It Good for You?

equity release
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This is a collaborative post

Hodge Lifetime is known as one of the UK’s first equity release providers. They provided one of the first equity release plans available in the UK since 1965.

Hodge Lifetime is the longest-running equity release provider in the UK and was the founding member of the Equity Release Council.

Jason Stubbs, a leading expert on equity release, believes that Hodge equity release provides some of the most innovative equity release products available.

What’s Equity Release?

Your property’s equity is the actual market value of your house, less any mortgage you haven’t settled yet. It’s the amount you receive should you sell your home.

However, if you want to keep your house, you may still be able to access a large portion of this money. If your current mortgages have been settled, you could use companies that offer equity release.

Equity release gives you a significant sum of money to use but allows you to carry on living in your home. It can be valuable to cover more significant expenses such as your care needs later in life.

What does Hodge Lifetime Offer?

The equity release offer from Hodge is a flexible lifetime mortgage.

You will receive an upfront lump sum, further optional cash withdrawals will follow this in the future.

Why’s Hodge’s Offer Good for You?

Hodge’s lifetime equity release plan is a drawdown product. This means that the amount you are approved to borrow can be withdrawn in stages. The equity release plan from Hodge has the following outstanding features:

Feature #1. Flexible Amount

You can borrow between 15% and 50% of the value of your home. The amount can be paid out in cash, with other amounts available to withdraw at future dates.

Feature #2. Interest Repayments

You only pay interest on the capital released to you, not the total amount you are approved for.

Feature #3. No Early Repayment Charges

You can make repayments on your interest owed of up to 10% per annum, and you will not incur any early repayment fees.

Additionally, should you sell your home within 5 years of taking up Hodge’s offer, you can settle your loan amount without incurring any early repayment fees.

How do I Qualify for Hodge’s Offer?

  • You need to be over the age of 55
  • You need to own your home
  • You must borrow a minimum of £15000
  • Incremental withdrawals must be over £1000
  • You can only lend a maximum value of £500 000
  • Your property must be worth a minimum of £100 000
  • You must settle any outstanding mortgages with the money released

How do I Apply?

Hodge only works through accredited financial advisers. The best option is to contact your adviser or reach out to Hodge and let them get you in contact with one of their certified advisors.

Why you Should Consider Hodge’s Equity Release Offer

Hodge is one of the most established and reputable equity release providers in the UK, and as such, they offer some of the best equity release options on the market. If you are in the market for an equity release product, it may be pertinent to consider Hodge as one of your choices.

Why Is Equity Release Supermarket So Popular: Everything You Need to Know

Middle aged couple suitable for equity release
Image by Alisa Dyson from Pixabay
This is a collaborative post

Due to recent increases in house prices and sluggish wage growth, you may find it increasingly tough to climb the property ladder. However, the money you have invested in your existing property over the years can be released.
Equity release works as a loan secured against your property with a fixed interest rate that can be taken out as a lump sum or spread out over several years using a drawdown facility. 

As an expert in the equity release field, John Lawson of SovereignBoss explains why equity release supermarket is so popular.

What Is Equity Release & How Does It Work?

An equity release mortgage is a loan plus interest that is repaid to the lender when the homeowner dies or enters long-term care. 

Lifetime mortgages and home reversion schemes are two options for equity release. However, lifetime mortgages are the most popular way of releasing equity.

A lifetime mortgage usually has a set interest rate and does not require frequent payments, unlike a standard mortgage (unless you want to). If you don’t make any payments, interest is imposed on both the original loan amount and the interest accrued.

Selling all or a portion of your home, below market value, to an equity release company is known as a home reversion plan. What’s great is that despite the sale, you still have the right to stay in your home, rent-free, for the rest of your life.

Equity release is designed for older folks. So, when you reach the age of 55, you’re eligible for equity release if you own a property in the United Kingdom worth at least £70,000 and have little to no mortgage on it.

What Is Equity Release Supermarket?

Equity Release Supermarket is a national independent equity release specialist that provides the best impartial financial advice, access plans from the whole marketplace and recommends the best equity release.

Why is Equity Release Supermarket Popular?

Equity Release Supermarket offers you the following:

  • An online dashboard and comparison tool provides complete transparency.
  • Unbiased guidance and access to an online comparison tool that allows you to evaluate deals throughout the whole market.
  • They have a client app that allows you to stay updated, should you require further information.

How Can Equity Release Supermarket Help You?

An Equity Release Supermarket advisor can assist in locating lifetime mortgages with the best interest rates, costs, and package features.

For example, If you believe you may need more money in the future, a lifetime mortgage with a reserve fund that you can access later will lower your overall interest expenses.

What’s more, your advisor will help you find the right lender that’s an Equity Release Council member. Council members are regulated and come with a promise of no negative equity. This means you’ll never owe more on your home than it’s worth.

Lastly, a good advisor will help you determine a forecast of future debt.

In Conclusion

If you’re looking at all the equity release schemes available on the market, consider talking to an advisor to help you compare the equity release rates and product features. 

Equity release calculators are very popular and accurate, but they often don’t give enough cost information.

Equity Release Supermarket’s service gives you impartial advice and access to an online comparison tool, enabling you to assess deals available across the whole market.

Funding Your Dream Vacation with Equity Release. What Does It Cost?

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This is a collaborative post

Too many individuals put their vacation plans on wait because they don’t think they’ll be able to afford them.

Taking that ideal vacation with the help of a home equity loan has never been easier & more accessible.

Equity release consultant John Lawson walks us through the cost of equity release & why using the equity accumulated in your property to take your dream vacation is good.

What’s Equity Release?

Equity release is a term used to describe solutions that allow people over the age of 55 to access the equity (capital) in their homes.

You have the option of releasing the cash in one large lump payment, many smaller instalments, or a combination of the two.

How Does Equity Release Work?

Equity release allows you to take a tax-free lump amount of the value you’ve built up in your house.

There’s no need to relocate, & you’ll retain ownership of your property. With equity release, you don’t have to make monthly payments unless you want to.

The loan is generally repaid when the final borrower enters long-term care or passes away.

Types of Equity Release

A lifetime mortgage & a home reversion scheme are the two most prevalent methods of equity release.

Lifetime Mortgage

You’ll keep 100% ownership of your home if you take out a lifetime mortgage. You can get money in a flat sum, monthly instalments, or a mix of the two.

Unless you desire to return the loan with the profits from the sale of your property, the loan, plus your accrued interest, is then repaid with the proceeds from the sale of your property.

Home Reversion

You’ll sell all or part of your home in return for equity in a home reversion arrangement.

The lender will get their share when the house is sold after you’ve died or transferred into a care facility.

How Much Money Can You Borrow With Equity Release?

For example, suppose you’re 68 & own a property worth £240,000. You could potentially borrow £80,000 at a fixed interest rate of 4.69 per cent for the rest of your life interest rates vary according to your unique circumstances, the product chosen, & other factors).

The above is a sample rate & will vary on your unique circumstances.

What’re the Costs of Equity Release?

Paying for guidance & application fees are included in the first equity release set-up charges.

Some advisers offer a fixed fee of £900 to £2000, while others charge 1.5% to 2% of the equity released.

The application or arrangement fees cover the equity release provider’s legal & administrative costs.

It’s worth noting that the expenses of equity release can be compensated by the monies released from your house, & there are ways to keep your expenditures down.

The total expenses of the equity release procedure range from £1500 to £3000, not including the compound interest owing.

These fees may differ based on the lender & representation you choose.

Our Take Away

One of the most practical methods for paying for your trip is an equity release plan. Just remember to do your homework before agreeing to anything with anyone.

At the absolute least, make sure you only work with firms that follow the Equity Release Council’s guidelines. There’s no limit to how much of the globe you can see with the money you’ve amassed from your estate.

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