Hodge Bank Equity Release And Retirement Mortgage Reviews 2025

Hodge Bank offers equity release and retirement interest only (RIO) mortgages that allow you to unlock the potential of your home.

With Hodge Bank’s RIO mortgages, you can choose a product to suit your individual needs and goals in retirement, giving you a head start on financial freedom.

Take advantage of the low rates and flexible payment options available through Hodge Bank, allowing you to use your property as an investment tool and build up a secure retirement fund.

Unlock the potential of your home today with Hodge Bank’s equity release and RIO mortgage solutions!

Do any of the following apply to you?

• ​Do you have a mortgage you need to pay off?
• Do you require money for repairs or home improvements? Like a new kitchen or bathroom.
• ​Would you like to help ​a family member purchase their first home?
• Would you like to pay off all your credit cards and loans and have zero monthly payments?
• Would you like a better lifestyle, change your car or have a well-deserved holiday?

​​Find out how much tax-free cash you could release using the form below:

Are you over the age of 55? If so, then you may have the opportunity to add extra stability and security to yourself and those close to you.

Equity release schemes can help unlock money trapped in a property, even amidst economic uncertainty in the UK. More than 200 options are available today with competitive interest rates, high loan-to-value ratios, and safeguards for long-term use.

Not keen on impacting your estate? Inheritance protection allows you to set aside a portion of your home’s value, which will be available to your beneficiaries. This amount is independent of any future increases in the loan.

Do you want to explore an equity release plan further? Just fill out the secure form above – it’s simple and only takes a few minutes. With no obligation whatsoever, why not find out what hidden value your property holds today?

Let’s Explain: Hodge Bank Lifetime Equity Release Review

Key Points to Note:

• Hodge Equity Release is the longest-running provider of equity release products in the UK. Their business wholly serves financial retirement solutions to homeowners. They’ve successfully exceeded customer needs since their inception in 1965, making them the longest-running equity release company in the UK. It is a veteran of the equity release market.
• Hodge is a founding member of the Equity Release Council (ERC) and was a member of the SHIP (Safe Home Income Plans) trade body before it rebranded as the ERC.
• Hodge Lifetime Equity Release has a string of awards, including the Mortgage Club Awards’ “Best Lender for Later Life Lending” in 2018, as well as the Moneywise Award for “Best Lender for Older Borrowers” the previous year. Hodge is also 2018’s Mortgage Strategy Award winner and “highly commended” by the Mortgage Finance Gazette.
• If you have an old interest only mortgage that you need a cash lump sum for a Hodge lifetime mortgage could be ideal for you.
• Suppose you don’t have the personal income for a retirement mortgage or a residential mortgage. In that case, the Hodge equity release plans product range could be an excellent option, especially given its no-maximum-term feature.

Hodge Lifetime offers a range of financial products suited to homeowners both in and near retirement. For equity release, this review focuses on the Hodge Lifetime Mortgage range, rather than the Retirement Mortgages they offer, which fall outside the scope of the Equity Release Council. This review discusses in detail the four equity release products offered by Hodge.

For a more comprehensive insight and comparison of the entire market on products tailored to your circumstances, contact us for expert advice on all aspects of equity release. We can advise and assist with the Hodge Equity application process.

Release products, which you will need, as the products reviewed here are only accessible through the intermediary market and not available directly.

Contact 1st UK today for expert advice, assistance, and guidance on equity release.

​Hodge Equity Release Options

Flexible Lifetime Mortgage

The Flexible Lifetime Mortgage is Hodge’s drawdown equity release product. With it, you can borrow between 15% to 50% of your home equity (subject to age and home valuation), and release the funds in stages.

With this option, you repay interest only on the money released from the total amount you apply for and are approved for. The minimum loan amount is £15,000, with a maximum of £500,000. The only requirement for each transaction is to withdraw at least £1,000. Some equity release companies providing drawdown options have higher minimum withdrawals, usually £2,000.

If you’re considering topping up your retirement income by £1,000 per year, maybe to pay for insurance or vehicle maintenance and other living costs that’d take some financial worry off your shoulders, Hodge’s Flexible Lifetime Mortgage could be worth considering.

Interest is only repaid on what’s withdrawn and not on what’s reserved to start at a later date. You can repay up to 10% each year on any amounts you withdraw, without charging early repayment fees.

Additionally, there’s added protection from early repayment fees if you sell your home after five years, as you’ll be able to repay the loan in its entirety penalty-free. You’ll still have interest payable but not the associated exit fees.

Lump-Sum Lifetime Mortgage

Hodge’s Lifetime Mortgage gives you a lump sum payout based on your age at the time of application and the value of your home. You can borrow between 15% to 50% of your property’s value, subject to a home valuation report. The repayment terms can be rolled up and only repaid when you (or both people on a joint application) die or move into a care home.

As with other Hodge products, early repayment facilities are built into the Lump Sum Lifetime Mortgage. The main point to note is that customers can repay up to 10% of the initial loan amount each year. This can help you build back up to 100% home equity to benefit the beneficiaries of your estate.

The option to repay anything is entirely optional. Also, with this option, a downsizing guarantee is built in, so you can sell your home after five years without being stung by high early repayment charges.

Hodge Lifetime Mortgage with Variable Early Repayment Charges

This is similar to the Hodge Lump Sum option, with the only difference being that it’s more suited to those under 60. The minimum age for eligibility is 55 years old instead of 60, which is the minimum for all the other Hodge equity release options discussed in this review.

This product is most suited to working homeowners aged 55 to 60 looking to release money from their property wealth as a lump sum, with the option to repay the loan early rather than keeping it in place for the rest of their lives.

The repayment charges to pay your loan off early are fixed for the first 10 years, letting you repay 10% of your loan amount penalty-free each year. Think of it as a ten-year loan secured on your home based on your equity.

You go into the mortgage deal knowing all the fees, putting you in a better position to plan your finances ahead of time so the loan is repaid in 10 years. What to remember here is that you can only pay up to 10% of your initial loan amount per year. If you do, penalty fees will be applied.

Index-Linked Hodge Lifetime Mortgage

The Hodge Index-Linked Lifetime Mortgage guarantees an interest rate guarantee based on the All Items Consumer Price Index’s movement. The security you get with this is based on a ceiling rate and a floor rate, which will be set out in your initial mortgage offer before you agree and explain them to your advisor.

Generally, with the Index-Linked option, you’ll be on a variable interest rate linked to the Consumer Price Index with a guarantee that your rate will never be lower than the floor rate or higher than the ceiling rate detailed in your initial mortgage agreement. These are set individually and will vary by the applicant based on circumstances.

The upper age limit is 85 years old, and the maximum borrowing amount is £1,000,000.

Hodge Equity Release Eligibility Criteria:

• The minimum age requirement is 60 years old, except for the Lifetime Mortgage with fixed repayment fees at 10% of the loan amount per year over ten years, with a minimum age of 55 years old. All other Hodge Lifetime Mortgages have an age requirement of 60 to 85 years old.
• Applicants must be the homeowner. On joint home ownership, a joint application is required.
• The minimum borrowing amount is £15,000 on all Lifetime Mortgage products except the Flexible Lifetime Mortgage, which has a minimum loan amount of £20,000. You can withdraw any amount under the total loan amount incrementally at the minimum withdrawal rate of £1,000 per transaction using drawdown.
• Hodge’s lifetime equity release maximum lending limit is £500,000 across all Lifetime Mortgages, except the Index-Linked option, which has a higher borrowing limit of £1,000,000.
• For Hodge lifetime equity release, all maximum limits are capped at 50% of your property value.
• Minimum property valuation is £100,000.
• Your property must be a freehold, built of standard construction and located in England, Wales or Scotland.
• Properties affected by flooding or structural issues may not be eligible.
• Leasehold properties are considered, provided a minimum lease term of 90 years remains on the lease.
• If you still have a mortgage, it will need to be paid off in full from the money released.

The Fine Print of Hodge Equity Release Reviewed

• Interest is added monthly on all Lifetime Products except the Index-Linked Lifetime Mortgage, which has interest applied annually based on the annual movement of the Consumer Price Index rate. The lifetime mortgage interest rates can depend on your age and the loan-to-value of your home. You pay interest, and it will show on your statement.
• All Hodge lifetime equity release products are portable, so you can transfer the loan if you move property. Some products have a downsizing guarantee that kicks in after five years from your loan approval date, letting you repay the loan amount without being charged an early settlement penalty.
• Additional borrowing can be arranged at a future date, subject to application and approval processes, but there’s no guarantee additional borrowing will be approved. They are similar to retirement interest only mortgages in some cases.
• The no negative equity guarantee applies.
• The drawdown lifetime mortgage can be cost-effective for many individuals, as indicated by the lifetime mortgage calculator.
• There is no early repayment charge when you release equity with a later life mortgage.
• Your later life mortgage options may affect your council tax benefit, tax position, state benefits, and your status as a primary residence if you die or enter long-term care.
• The Prudential Regulation Authority oversees later-life mortgages, and when you receive financial advice about your equity release plan, the advisor assumes a level of responsibility.

Hodge Lifetime Equity Release Plans for 2025

For 2025, Hodge Lifetime Equity Release is likely to plan some lower rates and potentially higher loan-to-value products, especially in the best areas to flip houses in the UK, where there is high confidence in property price appreciation.

If I want to release tax free cash, why do I have to pay an advice fee?

Suppose the type of equity release you want is a fixed interest rate lifetime mortgage. In that case, virtually all fixed-rate lenders will only accept applications directly from private individuals. They will need a financial adviser involved in the equity release process so they can tell the borrower about the lending criteria and ensure it fits their circumstances.

Most lifetime mortgages offer the ability to make voluntary payments with your pension credit. Still, as there are no mandatory monthly payments, no affordability checks contribute to your personalised illustration.

If you have medical conditions, the amount of equity you can release will differ significantly. You may be able to get more money sooner, even from your existing lender, subject to their terms and conditions. There could also be a completion fee to pay.

What if I am struggling with my mortgage payments and am sick of paying interest monthly?

You can pay off your existing loan early by researching the types of lifetime mortgages and securing a cash sum. The charged interest can be added to the loan, and the amount you owe will rise over time. Later-life lending, including the interest, is usually repaid when the last borrower dies or enters long-term care.

What if I want to make flexible repayments?

Many lenders will allow you to pay the interest charged – you need to look for flexible features before signing away your own home, and look for a trusted place to provide advice.

I want to gift money to help my family on the property ladder, and I have a mortgage left – can I get a lifetime mortgage?

As long as your mortgage balance is not too high, the money left from the lifetime mortgage can be used to gift to others.

At 1st UK, we have a team of experienced advisors qualified to discuss equity release options with you. Additionally, we work independently, meaning we’re not tied to any equity release company. This allows us to compare the entire market (currently comprising 133 products from 88 equity release lenders) and advise on the best solution for your circumstances.

Additionally, if you’re in Northern Ireland, we have companies on our panel which can help you with equity release, too.

How much does equity release cost, and is this shown in the free equity release calculator?

An independent financial adviser with a specialist qualification and award-winning service will study the market value of your home and any outstanding loan you may have. Then, they will tell you about Santander equity release mortgages, a home reversion plan and compound interest. They will also tell you about advice, arrangements, and solicitors’ fees.

Please note that the Hodge Lifetime logo is a Julian Hodge Bank Limited trademark, to which we have no direct affiliation. The equity release firms we work with provide quotes from many providers.