Julian Hodge Bank Limited now Hodge Lifetime has offered equity release products since 1965. As one of the original lenders of lifetime mortgages and home reversions the company has been a pioneer and steady financial institution. While they no longer offer products directly through their company, they do have validated and authorised sellers of their products. The company continues to adapt their equity release schemes including their Flexible Drawdown Plan to fit consumer needs. Their lifetime mortgage products adhere to Equity Release Council Code of Conduct standards and Financial Conduct Authority regulations. This means their equity releases fall under the SHIP or Safe Home Income Plan as well as adhere to the ‘no negative equity’ requirement.
Flexible Drawdown Option
Hodge Lifetime offers an interest only drawdown lifetime mortgage. It has a flexible repayment option with the potential of becoming a roll-up lifetime mortgage later on. Initially there is a requirement to repay the interest as it accrues. The main feature of this product is to provide an initial lump sum to homeowners and then a cash reserve facility for further withdrawals as they are needed.
The flexibility of the plan is why it fits industry demands. It can be set up to fit the needs of the client whether this means a drawdown facility in which a minimum subsequent withdrawal of £1,000 is required. The main option is to obtain a lump sum of cash that is useful to the homeowner ensuring they can meet their daily retirement needs.
Qualifications and Other Criteria
Plans begin at the age of 60. A minimum property value in the home must be £100,000. This minimum is higher than typical lifetime mortgages on the market; however, the option for flexibility makes it an appealing option. A minimum of £15,000 must be taken as the initial lump sum.
Other criteria require the residence to be located in Wales, mainland Scotland, and England. Products are not offered to homeowners in Northern Ireland.
As a flexible option the loan comes with a flexible repayment choice. After the first 5 years, repayments can be made with no early repayment fees. Up to 10% per annum can be repaid for the capital plus interest. There is also a downsizing option that carries protection for the homeowner if they need to move to a smaller home due to the loss of a partner or insufficient living funds to continue making interest only payments.
Hodge Lifetime offers a free valuation offer upto £1m property value with flexible repayment option. There is downsizing protection options as well as no penalty for early repayment after five years.