Hodge Lifetime was original formed in 1965 as Home Reversions Ltd and was a founder member of the trade body – SHIP (Safe Home Income Plans) in 1991, whom itself was recently rebranded as the Equity Release Council. Hodge Lifetime are a subsidiary of Julian Hodge Bank and have now been providing equity release schemes longer than any other equity release UK company.
Specializing in the post retirement marketplace, Hodge Lifetime offer a range of products from annuities to equity release schemes. Their equity release mortgages were the first to incorporate the flexible 10%pa repayment strategy, of which other lenders have since mirrored. This allows total control of the future balance as necessitated by the homeowner and the reason it meets the interest-only definition of this category. With additional unique product features, Hodge Lifetime are a leading innovator in this expanding industry with a range of fixed & variable rate lifetime mortgages.
This Hodge Indexed Lifetime Mortgage range is a newer suite of lump sum equity release schemes offering three tiers of variable rate plans, differentiated by their loan-to-value ratio’s. This standard entry point plan – the Indexed Lifetime Mortgage plan offers the lower release amount of the three indexed options in terms of lump sum availability, but consequentially this standard plan has an attractively lower interest rate for the homeowner. The additional plans are the Indexed Lifetime Mortgage Plus & Mortgage Max which offer higher loan-to-values, an higher associated interest rates.
Hodge Lifetime are only the second equity release lender to offer a variable interest rate product, linked to the Consumer Price Index (CPI). Choice is important and with this comes a range of flexible features for the homeowner to be able to discuss with their equity release adviser. This is a new bold step for the Equity Release marketplace and effectively brings lifetime mortgage interest rates
more in line with conventional mortgage interest rates.
The Hodge Indexed Lifetime Mortgage range provides for a simple one-off lump sum equity release scheme which is ideal for homeowners looking to withdraw a lump sum of equity, but maybe without the potential need for access to capital in the future.
Hodge’s variable interest rate product is maybe geared towards homeowners looking for the lowest equity release interest rates possible, and wishing to make repayments resulting in the prevention of interest roll-up which in turn helps control the future balance. This product maybe ideal for those with mortgages, at or near retirement, which are in need of repayment, but have no exit strategy in place. Additionally, we can see the product being used as part of inheritance tax mitigation exercises, particularly those who understand the implications of variable interest rates.
Hodge Equity Release have a minimum acceptable property valuation on their Indexed Lifetime Mortgage range of £100,000 with a maximum valuation of £1 million (or £2million within M25). Please contact us directly on properties valued over these amounts as cases can be individually underwritten, with bespoke quotes via Equity Release Supermarket – 0800 678 5955
The homeowners property must be their main residence which needs to be located solely within England and Wales.
This Hodge Indexed Lifetime Mortgage plan is available on both a single and joint life basis with a minimum age of youngest homeowner being 55 and a maximum age at entry of 85.
The minimum release Hodge will accept on their Lifetime Mortgage range is £15,000 with a maximum equity release lending amount of £500,000. Please call 0800 678 5955
for your personalised Hodge Lifetime Key Facts Illustration.
The Hodge Lifetime Mortgage is effectively a one-off lump sum, variable rate equity release plan which provides the homeowner with tax-free cash lump sum which can be spent on anything they wish. This indexed linked equity release scheme is effectively a roll-up lifetime mortgage plan that offers one of the lowest interest rates from the whole suite of Hodge Lifetime schemes.
The CPI variable interest rate is calculated by utilising a base interest rate (collar). Hodge take the annualised Consumer Price Index (CPI) figure every October & add this to the collared base interest rate the following April. The sum of these two figures gives us the interest rate that will be charged for the following 12 months, effectively giving a one-year reviewable fixed rate.
To counter any run-away interest rates, Hodge Lifetime provide an interest rate cap, which means an upper interest rate limit is applied to the scheme. This provides a guarantee of the maximum interest rate that Hodge can ever go upto for the lifetime of the plan. For the latest capped & collared Indexed Lifetime Mortgage interest rates contact Equity Release Supermarket on 0800 678 5955
The Standard Indexed Lifetime Mortgage plan differs from the Indexed Plus plan & Indexed Max version, by offering lower loan-to-value percentages at any given age which results in this standard plan receiving a lower interest rate as a consequence. The Hodge Indexed Lifetime Mortgage range start at age 55 with maximum loan-to-value percentages of 15% and rising to a maximum of 50% at age 85.
The key to this plan which sets it apart from other lump sum plans are the options which are designed to be adaptable to the homeowners situation which allow control over the future balance and flexibility should their circumstances change.
This Indexed Lifetime Mortgage plan comes with the benefit of a FREE valuation upto £1million, thus reducing set-up costs. This lump sum tranche of money receives a variable lifetime equity release interest rate which has the benefit of the homeowner & beneficiaries having choice over what kind of rate they prefer.
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 provider.
There is no regular payment commitment imposed by Hodge, thus the interest if required can be left to roll-up. However, Hodge Lifetime do provide a 10%pa flexible repayment option which allows homeowners the option to make repayments back to Hodge Lifetime, which in turn helps control their future balance & ultimate inheritance. This voluntary payment option permits upto four payments each year and these can be ad-hoc payments to suit budget.
Finally, the feature which sets this Hodge Indexed Lifetime Mortgage product range apart from the rest is the fixed
early repayment charges. In the first 5 years the penalty is 5%, then decreases to 4%, 3%, 2% and by the 9th year it’s only 1% with NO penalty thereafter. Therefore those knowingly paying this off in the future have safer exit strategy.
The Hodge Indexed Lifetime mortgage allows homeowners to spend their tax-free cash as they wish, with no need in having to make any repayments or move house. However, one of the features of this variable rate Lifetime Mortgage plan is the Flexible Repayment Option. This enables the homeowner to control their future balance by making repayments of upto 10% of the original amount borrowed each year, with NO penalty. Hodge do allow payments to commence from day 1 of the plan and upto 4 payments per annum.
Therefore, should a level balance be required, the homeowner can elect to make repayments of interest-only back to Hodge Lifetime immediately once the plan has started. The Hodge Lifetime Mortgage UK scheme can theoretically also be used for capital & repayment purposes. Adopting this strategy, if the full 10% allowance is used every year, then the balance would be reduced significantly; ideal if wanting to protect any inheritance. These payments are purely voluntary and the choice of the homeowner.
To obtain further information or to request a quotation on the Hodge Indexed Lifetime Mortgage Plan, or quotes for the Lifetime Mortgage Plus & Mortgage Max, please contact the Equity Release Supermarket team on 0800 678 5955