Hodge Lifetime offers more than 40 years’ experience in the financial sector. The first location opened in 1965 offering retirement solutions to UK residents. It is the oldest company to offer equity releases in the UK, although it is not the oldest bank to have any type of mortgage. The company started under Julian Hodge Bank Limited. Hodge has been known as a retirement mortgage company, while also offering annuities and equity release products. Their main focus is on lifetime mortgages. The company mission is to offer competitive annuity rates when possible as well as lifetime mortgage products with flexibility and competitive pricing.
The retirement mortgage product, Hodge Lifetime offers is a new type than what they have offered in the past. After the reconfiguration of the mortgage market after the subprime mortgage crisis and recession, it was necessary for Hodge to offer a more flexible option.
The Hodge Lifetime Retirement Mortgage is not a part of the Equity Release Council’s SHIP Standards. It is important to understand the difference between regular equity releases that are covered under SHIP and Hodge’s retirement lifetime mortgage.
The retirement plan is going to require repayments. Homeowners still borrow against the value of their home and the loan can be used for nearly any purpose the homeowner has. However, there is a requirement of interest to be paid each month. The capital is still repaid at the end of life, if the home is sold, or if a permanent move to long term care occurs. It still encompasses the no-negative equity guarantee to protect against any home value shortfall at the time of repayment. When the youngest homeowner reaches 80 years old or the 5th anniversary of their loan it is possible to change it from an interest only loan to a roll up lifetime mortgage, where interest repayments are no longer necessary.