"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"
Hodge also offers a version of this feature on its fixed-for-life retirement interest-only mortgage and its recently launched holiday let products. It's now extending this facility across all of its 50+ and retirement interest-only mortgage products.
The Promise 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 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.
“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.”
