Hodge Bank Equity Release And Retirement Mortgage Reviews 2026
Hodge Bank offers equity release and retirement interest-only (RIO) mortgages that let you unlock your home’s potential.
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 Hodge Bank’s low rates and flexible payment options to use your property as an investment tool and build a secure retirement fund.
Unlock your home’s potential 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 lets you set aside a portion of your home’s value for 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 UK’s longest-running provider of equity release products. It provides financial retirement solutions to homeowners. Since its inception in 1965, it has consistently met customer needs, making it 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 previously belonged to the SHIP (Safe Home Income Plans) trade body before it rebranded as the ERC.
- Hodge Lifetime Equity Release has won several awards, including the Mortgage Club Awards’ “Best Lender for Later Life Lending” in 2018 and the Moneywise Award for “Best Lender for Older Borrowers” the previous year. Hodge also won the 2018 Mortgage Strategy Award and was “highly commended” by the Mortgage Finance Gazette.
- If you have an old interest-only mortgage and need a lump-sum cash advance, a Hodge lifetime mortgage could be ideal.
- Suppose you don’t have sufficient personal income for a retirement or residential mortgage. In that case, Hodge’s equity release product range could be an excellent option, especially given its no-maximum-term feature.
Hodge Lifetime offers a range of financial products for homeowners 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 details the four equity release products offered by Hodge.
For more comprehensive insight and a comparison of the entire market for 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.
You will need release products, as the products reviewed here are only available through the intermediary market and not 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. You can borrow between 15% and 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 amount released, not the total amount you apply for and are approved for. The minimum loan amount is £15,000, and the maximum is £500,000. Each transaction requires a minimum withdrawal of £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, vehicle maintenance, or other living costs, and 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, you’ll have added protection from early repayment fees if you sell your home after five years, as you can repay the loan in full penalty-free. You’ll still pay interest, 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 your home’s value. You can borrow between 15% and 50% of your property’s value, subject to a home valuation report. You can roll up the repayment terms and repay only 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 key point is that customers can repay up to 10% of the initial loan amount each year. This can help you rebuild to 100% home equity, benefiting your estate’s beneficiaries.
Repaying anything is entirely optional. This option also includes a downsizing guarantee, 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, except it’s better suited to those under 60. The minimum age for eligibility is 55, rather than 60, the minimum for all other Hodge equity release options discussed in this review.
This product suits working homeowners aged 55 to 60 who want to release money from their property wealth as a lump sum, with the option to repay the loan early rather than keep it for the rest of their lives.
The repayment charges for paying your loan off early are fixed for the first 10 years, allowing you to repay 10% of your loan amount each year penalty-free. Think of it as a ten-year loan secured by your home 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. Remember, 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 to it and will be explained 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 of 10% of the loan amount per year over 10 years, which has a minimum age of 55 years old. All other Hodge Lifetime Mortgages require applicants to be aged 60 to 85.
- 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 up to the total loan amount, in increments of at least £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, you must pay it off in full using the released funds.
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. Lifetime mortgage interest rates can depend on your age and your home’s loan-to-value. 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 5 years after your loan approval date, allowing you to repay the loan amount without incurring 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 lifetime mortgage drawdown can be cost-effective for many people, as the lifetime mortgage calculator shows.
- 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 2026
For 2026, Hodge Lifetime Equity Release is likely to offer lower rates and potentially higher loan-to-value products, especially in the best areas to flip houses in the UK, where property price appreciation is expected to be strong.
If I want to release tax-free cash, why do I have to pay an advice fee?
Suppose you want 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 to explain the lending criteria to the borrower and ensure they fit their circumstances.
Most lifetime mortgages let you make voluntary payments from your pension credit. However, because there are no mandatory monthly payments, your personalised illustration includes no affordability checks.
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. You may also have to pay a completion fee.
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 lifetime mortgages and securing a lump 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 allow you to pay the interest charged; look for flexible features before signing away your home, and seek trusted 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 remaining funds from the lifetime mortgage can be gifted to others.
At 1st UK, our team of experienced advisors is qualified to discuss equity release options with you. We also work independently, so we’re not tied to any equity release company. This lets us compare the entire market (currently 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 does the free equity release calculator show this?
An independent financial adviser with specialist qualifications and an award-winning service will assess 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 explain advice, arrangements, and solicitors’ fees.
Please note that the Hodge Lifetime logo is a trademark of Julian Hodge Bank Limited, with which we have no direct affiliation. The equity release firms we work with provide quotes from many providers.
