Hodge Lifetime Equity Release Reviews
Important information: Hodge Life Assurance Company has been sold to Reinsurance Group of America (RGA) so no longer offers equity release mortgages. So please disregard the information on this page until such time that they re-enter the market.
- Longest established equity release provider
- Companies prime focus is dedicated to the retirement market
- Offers four types of plan including index linked equity release schemes
Try the Equity Release Calculator
Once you have read the Hodge Lifetime Review, you could compare equity release reviews from other providers and as a starting point use the equity release calculator to see how much cash you could release from your home
About Hodge Lifetime
This Equity Release review focuses on Hodge Lifetime; a company that is dedicated to products and services for the retirement market.
Hodge Life Assurance Company Ltd was incorporated in 1965 and is a wholly owned subsidiary of Julian Hodge Bank Limited. They were a founder member of the Equity Release trade body; launched the first plan in 1965 and are the longest established equity release provider in the UK.
In addition to providing equity release schemes, Hodge Lifetime also specialise in annuities and mortgages for retirees and those over 55.
Regulated by the Financial Conduct Authority, Hodge Lifetime are also members of the Equity Release Council, which means they have voluntarily agreed to abide by the principles of their membership. In addition they are highly commended by the Mortgage Finance Gazette 2017 and winner of the ‘Best Lender for Older Borrowers’ by the Moneywise Mortgage Awards 2017.
The Hodge Lifetime Equity Release options
Hodge Lifetime offer 4 types of lifetime mortgage that we will focus on in this equity release review:
- Flexible Lifetime Mortgage (with variable early repayment charges)
- Lump Sum Lifetime Mortgage(with variable early repayment charges)
- Lifetime Mortgage (with fixed early repayment charges)
- Indexed Lifetime Mortgage (with fixed early repayment charges)
All options come with the usual 'No Negative Equity Guarantee’ meaning that you will never pay more than the value of the property and you retain 100% ownership of your home and are able to remain there until you die or move into care.
Flexible Lifetime Mortgage
The Flexible Lifetime Mortgage gives you the option to take out an initial lump sum but then withdraw further cash sums at a later date. This means that you will only be charged interest on the actual amount you borrow but any subsequent loans would be charged at the interest rate at that particular time. The minimum amount you can withdraw is £1,000 per transaction.
In addition with this particular Lifetime Mortgage you can repay up to 10% of the original cash sum plus 10% of any future withdrawals on an annual basis without being charged and have the option to repay the loan as a result of selling your home after 5 years (if you repay the loan within the first 5 years charges will apply).
The maximum loan available is £500,000 but the amount of money you can actually borrow will depend on your age and the value of your property.
Lump Sum Lifetime Mortgage
Similar to the Flexible Lifetime Mortgage but without the flexibility; this equity release option lets you borrow a lump sum in a single payment (depending on your situation further lending could be available).
The lump sum lifetime mortgage also comes with the option to repay 10% of the value of the initial loan each year and the opportunity to repay after 5 years as a result of selling or moving to a different property without incurring early repayment charges.
Again early repayments charges will be incurred for any repayment (over the allowed 10%) within the first 5 years.
Lifetime Mortgage
This Lifetime Mortgage is available to a slightly younger customer base, 55 instead of 60 and offers a higher loan value of up to one million pounds.
The loan is available in a single payment and you still have the option to repay up to 10% of the initial loan on an annual basis. Repayment charges for the full loan are on a fixed scale and payable for up to 10 years.
Indexed Lifetime Mortgage
The indexed lifetime mortgage is also available to 55 to 85 year olds with a maximum loan of £1,000,000. The main difference with this type of lifetime mortgage is that the interest on the loan is variable and applied once a year to reflect annual movement in the All Items Consumer Prices Index annual rate.
The plans come with an ‘Interest Rate Guarantee’ that includes a ceiling and floor rate which means you will never pay more or less interest than the two thresholds; these will be set out in the initial mortgage agreement.
Are you eligible for the Hodge Equity Release Scheme?
Once you have read your equity release reviews, before you decide on an equity release scheme with any provider it is important that you fully understand the implications of a lifetime mortgage; look at all the options available to you and discuss everything with the family.
Hodge Lifetime do not offer their equity release plans direct to the public. Instead you need to seek advice from a qualified financial advisor who, if appropriate will speak to Hodge about possible suitable lifetime mortgage options.
In addition, to qualify for a Hodge Lifetime equity release plan, the following must apply:
- The applicant is the home owner aged between 55 to 85 or 60 to 85 for the Flexible Lifetime and Lifetime sum products
- You are either mortgage free or have a small mortgage which will need to be paid off from the money you release
- The property is a freehold house, bungalow, flat or maisonette. If leasehold there must be a minimum of between 90 to 99 years left on the lease.
- The property is worth at least £100,000 and located in England, Scotland or Wales
- It is built of standard construction and not recently affected by flooding, subsidence or other structural issues
Additional Information
- The minimum amount you can borrow is £20,000 on the Flexible Lifetime and Lump sum Lifetime mortgage options or £15,000 on the Lifetime or Indexed Lifetime Mortgage.
- The interest is added to the loan on a monthly basis
- Additional cash withdrawals are available but not guaranteed
- Borrowing ranges from 15% to 50% of the value of the property depending on the type of Lifetime Mortgage you choose and your age
- Your Hodge Lifetime mortgage is portable so can be moved to another property depending on the lending terms and conditions
Hodge Equity Release Calculator
The Hodge Lifetime website has two types of equity release calculator. One of the calculators, like other websites looks at the amount you can borrow against your age and the value of the property. The other equity release calculator shows the effect the flexible repayment option has on the future of the loan.
Both equity release calculators are just guides; the flexible repayment calculator being more suited to IFAs rather than general public use, however the general eligibility calculator does give you a feel for the amount of money you could borrow.
For example if you are a 65 year old living in a house worth £250,000, the Hodge Lifetime equity release calculator shows that you could release up to £62,500.
What should I do now?
Now you have read our Hodge Lifetime Equity Release Review it is worthwhile knowing how their lifetime mortgage compares to other equity release schemes.
Remember, when comparing plans, some advisers only work with specific companies. This is one of the reasons we have teamed up with leading specialist Age Partnership, as they compare schemes and have access to preferential rates with leading UK companies like Aviva, Pure Retirement, Just Retirement,Canada Life and Crown.
Continue your research here on how to calculate equity release on your property.
Alternatively you can read more equity release reviews here.