Hodge Bank Equity Release And Retirement Mortgage Reviews 2023
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 lets you set aside part of the value of your home, which will be available for your beneficiaries. This amount is independent of any increases in the loan over time.
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 they started in 1965, which makes them the longest running equity release company in the UK. It is a veteran of the equity release market.
- Hodge are founding members of the Equity Release Council (ERC)and were members of the SHIP (Safe Home Income Plans) trade body before they rebranded to become what’s today called the ERC.
- Hodge lifetime equity release has a string of awards, including the Mortgage Club Awards “Best Lender for Later Life Lending” in 2018, just as they won 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 with no maximum term.
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 and not the Retirement Mortgages they offer, which are outside the scope of the Equity Release Council. The four equity release products by Hodge are discussed in detail in this review.
For more comprehensive insight and comparisons from the whole market on products suited to your circumstances, get in contact with us for expert advice on all things related to equity release. We can advise and assist in the application process for Hodge Equity.
Release products, which you will need as the products reviewed here are only accessible through the intermediary market and not available directly.
Get in contact with 1st UK today for expert equity release advice, assistance and guidance.
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 money released from the total amount you apply and are approved for. The minimum loan amount is £15,000, with an upper limit of £500,000. The only requirement for each transaction is to withdraw a minimum of £1,000 per transaction. 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 for whatever 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.
Like other products from Hodge, early repayment facilities are built into the Lump Sum Lifetime Mortgage. The main points of note are 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 beneficiaries of your estate.
The option to repay anything is entirely optional. Also, with this option, a downsizing guarantee is built into it, as 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 between the ages of 55 and 60 looking to release money from their property wealth as one lump sum and keep the option to repay the loan early instead of keeping it in place for the rest of their life.
The repayment charges to pay your loan off early are fixed for the first ten years, letting you repay 10% of your loan amount penalty-free annually. 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 for financial planning ahead of time to have the loan repaid in ten years. What to remember with this is that you can only pay up to 10% per year of your initial loan amount. If you do, there will be penalty fees 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 agreeing and explaining to your advisor what they mean.
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 age requirements 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 amounts incrementally at the minimum withdrawal rate of £1,000 per transaction using drawdown.
- Hodge lifetime equity release maximum lending limit is £500,000 on 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 Index Price 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 move the loan with you if you move property. Some products have a downsizing guarantee kicking in after five years of 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 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 could affect your council tax benefit, your tax position, your state benefits and your primary residence status if you die or go into long term care.
- Later life mortgages have oversite from the prudential regulation authority, and when you receive financial advice about your equity release plan the advisor concerned assumes a level of responsibility.
Whether you’re near retirement (aged 55) or over 60 whether in retirement or not, Hodge is well-positioned to help provide financial assistance based on your property wealth. How you spend the money and how you choose to repay that loan (if you do want to repay it) is entirely your choice too.
Hodge are specialists in all areas of financial services for the retirement market and is now catering to near-retired working homeowners, too, providing a range of products with various options.
Due to the complexity of equity release, Hodge operates through intermediaries only, ensuring their customers are well-informed before committing to any products.
Rio mortgages are also available, but they depend on certain things, including the youngest borrower’s age, the minimum amount and the income markets at the time of the application.
You should think hard before you borrow money secured on your home. Consider fixed interest rates if you can afford any monthly repayments and if the initial lump sum will be enough for your needs.
Some make a lifetime mortgage work by using the equity release calculator to pay an existing mortgage and give money to loved ones so the family can pay inheritance tax at a lower overall rate. This can make the rolled-up interest and legal fees added to the long term loan more justifiable.
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 the fixed-rate lenders will only accept applications directly from a private individual. 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, there are no affordability checks that contribute to your personalised illustration.
If you have medical conditions, how much equity you can release is very different. 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 could pay your existing loan early by studying the types of lifetime mortgage, and getting a cash sum. The charged interest can be added to the loan and the amount you owe will rise over time. The later life lending including the interest is charged is usually repaid when the last borrower dies or goes into 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 left is not too high, the money left from the lifetime mortgage can be used to gift money.
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, allowing us to compare the whole of the market (currently 133 products from 88 equity release lenders) and advise on the best solution to your individual circumstances.
Additionally, if you’re in Northern Ireland, we have companies on our panel which can help you with equity release too.
You may need a health assessment so the year you move into long term care can be estimated. The tax free lump sum can be higher for people will pre existing health conditions. A specialist equity release adviser can help you find an equity release provider to fit your financial circumstances and commitments to your outstanding mortgage.
It may be that Hodge is the best retirement provider, but depending on when we compare the whole market, alternative options could be more competitive. Right now, there’s a huge growth in equity release with more companies moving in to compete for customers. Going into 2019, competition between lenders is stiff, making now the best time for homeowners to take advantage of competitive rates, terms and flexibility.
We hope you found our Hodge lifetime reviews helpful. Talk to us to find out if equity release is a good idea for your situation, and if it is, we’ll calculate how much you can borrow and tell you the cost and best terms available from all the equity release companies (including Hodge) to let you know your best option – all without the obligation to proceed.
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 equity release mortgages, a home reversion plan and compound interest. They will also tell you about advice fees, arrangement fees and solicitors fees.
Please note that the Hodge Lifetime logo is a trademark of Julian Hodge Bank Limited, to which we have no direct affiliation. The equity release firms we work with provide quotes from many providers.