Latest news

Hodge Flexible Lifetime Mortgage Plans Explained

Compare Equity Release

Last updated on 27 June 2023

Hodge Lifetime has been an important player in the retirement finance sector since 1965, and has been providing equity release products and pension annuities. During the credit crunch when many lenders withdrew, or reigned in their mortgage book, Hodge opted for a different strategy.

With foresight & vindication that financial strength was imperative for durability in this competitive market, Hodge began to build up its annuities book. It considered some of the strongest & sustained players in the equity release market such as Just Retirement, Partnership and Aviva all had equity release plans fully, or partial funded by its annuities books. By gaining receipts from pension funds, such equity release companies can re-lend these monies out on equity release terms.

Therefore, over two years ago, Hodge toned down its equity release book, remained uncompetitive, albeit if needs must, their Shared Growth Option Home Reversion scheme & its basic lifetime mortgage plan remained. However, with this new approach they also started building its annuity book, with one eye in the future to re-enter the equity release schemes marketplace.

In 2012, once they had adequate strength, Hodge Lifetime launched its new product range; the first being the Hodge Lump Sum Lifetime Mortgage. A product, with new innovative features, that took the lifetime mortgage market by surprise and was welcomed wholeheartedly by equity release advisers. Following this initial product launch, Hodge then followed up the lump sum plan with its drawdown lifetime mortgage scheme which in conjunction with the new product features, now placed in amongst the higher echelon of drawdown product providers such as Aviva & Just Retirement.

Hodge Lifetime Background

Today, Hodge remains one of the leading names in the equity release sector. Hodge Lifetime is 100% owned as a subsidiary of Julian Hodge Bank Ltd, which in 1987 received authorisation status under the Banking Act. These parts of the Hodge Bank form the group of companies originally founded by Sir Julian Hodge.
Backed by Hodge Lifetime is currently one of the leading providers offering a flexible repayment option on their lifetime mortgage products. Drawdown lifetime mortgages are becoming increasingly popular as they offer flexibility and a way to have more control on how and when the mortgage is repaid.

Market Leading Products

The Hodge Flexible Lifetime Mortgage is an equity release scheme that allows an initial cash lump sum release, followed by optional cash withdrawals in the future. Its main USP is the flexible repayment option that it offers – whereby you can make repayments of 10% of the original lump sum borrowed, and an additional repayment of 10% of further cash withdrawal each year. For those people who cannot commit to the regular monthly payments of Stonehaven’s Interest Select or more2life’s Interest Choice Plan, Hodge allow for ad-hoc repayments whenever the time is right for you.

This allows exceptional control over how and when the loan is repaid. The most important advantage of the Hodge Lifetime mortgage is that there are no ERC’s (Early Repayment Charges) for repayments within these set limits, making it quite unique in that respect.

In addition to this flexible repayment option, this equity release mortgage also offers an important downsize protection clause – whereby there will be no early repayment charges if you repay the entire loan amount after 5 years, as long as this is done as a result of selling your home & downsizing. This makes Hodge’s Flexible Repayment Plan perfect for those who plan to sell their property after a few years, but need additional funds in the meantime.

Applications in life

Any older people find it necessary to downsize at some point, but want to postpone it to a later date due to a variety of reasons. For instance, people may need the additional space for the grandchildren when they stay over, and may plan to sell a few years down the line. The Hodge Lifetime plan offers the flexibility to do exactly that, with no early repayment penalties.

Qualifying criteria

Hodge’s Flexible Repayment Plan is available for people 60 years and older. The minimum property valuation is £100,000 and the maximum is £1 million. More expensive properties are also accepted on referral. The mortgage is currently available in England, Wales and mainland Scotland.

Hodge Lifetime is unique at the moment, in the flexible repayment terms it offers, as well as its no early repayment charges policy for repayment after downsizing.

To request a Hodge Lifetime quote or to request further information call freephone 0800 028 3142.

*The Hodge Lifetime Plan now comes with a free valuation upto £300,000.