The Hodge Flexible Lifetime Mortgage Plus scheme differs from the standard Flexible plan by the amount it releases via the loan-to-value percentages. In essence, the Lifetime Mortgage Plus will release a higher loan amount - typically 4% higher than the Standard Flexible Lifetime Mortgage version. However, the resultant effect is that the Plus plan attracts a slightly higher interest rate than the standard plan.
The Hodge Lifetime Flexible plan comes with a drawdown equity release reserve which provides the homeowner with an overall cash reserve facility. From this, the homeowner can take an initial tax-free lump sum for immediate use. Any unused cash is retained in a cash reserve facility with no interest or charges being applied to it. This is ideal for those needing access to immediate cash but requirements for further drawdown funds to supplement their retirement in the future.
The minimum withdrawal from the cash reserve facility is just £1,000 with no further administration charges for any additional drawdown amounts taken.
The initial tranche of money taken receives a fixed equity release lifetime interest rate, with any future drawdowns being charged at the interest rate applicable at the time of withdrawal.
Hodge Lifetime are members of the Equity Release Council and consequently their plans come with a no-negative equity guarantee. The protection this affords is that upon death and sale of the property, any beneficiaries cannot be left with any personal debt owing to the equity release lender.
There is no regular payment commitment imposed by Hodge, thus the interest if required can be left to roll-up. However, as discussed there is the flexible repayment option which does allow homeowners to make 10% per annum payments to Hodge and control their future balance.
A unique feature of the Hodge Lifetime Drawdown equity release plan is the Downsizing Protection feature which allows the homeowner to downsize or sell-up after 5 years and incur NO early repayment charges. If downsizing within 5 years from inception, then a 5,4,3,2,1% penalty* applies to the amount repaid.