We’re pleased to announce the extension of our Early Repayment Promise across our entire mortgage range.
While Downsizing Protection will be familiar to those in the Equity Release market, it may not be quite so well known in the wider market. Essentially, it allows customers to downsize and repay an equity release plan in full without incurring any early repayment charges. Many equity release products now offer downsizing protection, and Hodge offers this across its equity release product range.
We’ve been offering a version of this feature on our Fixed-for-Life Retirement Interest Only (RIO) mortgage, and recently launched Holiday Let products, but we’re now extending this facility across all of the 50+ and RIO mortgage products, under the newly-branded ‘Early Repayment Promise’.
Matt Burton, managing director of mortgages at Hodge, said: “Here at Hodge, we pride ourselves on our flexibility both in the criteria customers have to meet and the products that we offer, so it’s a logical next step to introduce the Early Repayment Promise (ERP) across all mortgage products.
“For instance, our ERP enables a holiday let mortgage customer to dip their toe into the holiday let market, judge how the rental yields are and decide whether or not to stick or sell without incurring any Early Repayment Charges.”
The ERP is applicable for all customers who want to sell a property during the term of their mortgage and redeem the mortgage loan in full.
Matt added: “ERPs, or downsizing guarantees as they are also called, are attractive and very popular in the Equity Release market and so we saw no reason not to extend this attractive proposition to the rest of our products. We believe this added flexibility will be really attractive to customers looking for a 50+, RIO or our new Holiday Let mortgages.”