Hodge Lifetime has offered equity release schemes and retirement products since 1965. They have consistently provided popular and award winning lifetime mortgages and home reversion products. Hodge does not sell their products directly to homeowners, but through FCA qualified equity release advisers. They do adhere to all Financial Conduct Authority and Equity Release Council regulations.
Hodge Lifetime offers their flexible drawdown plan to give homeowners an initial lump sum with further cash withdrawals available as needed. This is just one of the products Hodge Lifetime provides.
Features and Benefits
The Hodge drawdown lifetime mortgage provides tax-free cash to homeowners at a fixed interest rate for the rest of their life. The interest rate will not change on released funds over time; however, for each new withdrawal the rate will be set at the current equity release interest rate at that time.
The Hodge Flexible Lifetime Mortgage product is available to homeowners starting at age 60, with a maximum age of 85. This is for the youngest applicant in the case of a joint application. The property value minimum is set at £100,000 with a maximum of £1 million. For the drawdown lifetime mortgage an initial lump sum must be taken and all other drawdown withdrawals need to be at least £1,000 and do not attract any further administration fees once taken.
The loan to value ratio is 20% to 45% based on the youngest age, where someone age 60 receives up to 20%. The minimum loan amount is set at £15,000 with a maximum loan of £500,000.
There is an arrangement fee. Homes must be in England, mainland Scotland, or Wales to qualify.
Options to Add to the Plans
The Hodge drawdown plan allows up to 10% of the initial amount borrowed to be repaid early. Also 10% of other withdrawals can be repaid. This is on an annual basis, in which no repayment charge is taken despite the early repayment of the loan. This allows for random repayment & control over the future balance. This effectively could be worked to pay off the interest only, thus maintaining a level balance, or full use of the 10%pa allowance could actually reduce the balance of the equity release over time.
It is also possible to take advantage of a downsizing protection option after 5 years. There is no early repayment charge if it has been five years and the homeowner is selling the property or moving to a new property, where the lifetime mortgage can be transferred, or just repaid. This is unique to the lifetime mortgage industry.
If the moves occurs before 5 years, then a fixed penalty basis kicks in which reduces from 5% in the first year down to 1% in year 5. Should the Hodge equity release plan be repaid whilst the homeowners still live in the property, then an early repayment charge of upto 25% of the capital repaid is the maximum charge associated with the repayments.
Hodge Lifetime offers the downsizing protection option and flexible repayment option, with no penalties on downsizing after the first 5 years.