Equity Release News

What You Need to Know About Hodge Lifetime

Hodge Lifetime

Lifetime mortgages have become crucial to today’s retirement generation due to more expensive retirement situations. When there is a need for cash there is an answer in lifetime mortgages like the Hodge Lifetime plan. When you release equity from your home from one of the many providers you are using your home value to gain cash. Several providers have come into the market in the last five years due to increased financial needs during retirement.

Hodge Lifetime is one of these firms, and the company has been in operation since the 1960’s. Therefore, it has been around for quite a while. Its longevity as a company proves they have successful products and business practises that put them a step ahead of the rest. This firm is supported by Julian Hodge Bank which usually supports the funding in the equity release market. However, more recently in the credit crunch period they intelligently moved towards annuities as their new funding source. They have recently adopted the successful business model exhibited by Just Retirement.

The reason this firm has been so successful over the years has been due to the fact that it has been able to continuously come up with new products that attract new clients and keep old ones. For instance, Hodge Lifetime just recently came up with a new Lump Sum Lifetime mortgage. This new product allows people to downsize after five years without charging them an early repayment charge. This is a unique feature that other equity release lenders in the market do not offer currently.

There may be a time when your home is too large for you. You may also find it is too expensive to keep up or to costly based on your current income. Since most individuals seeking equity release do so at retirement when they live off of pensions, it can be imperative to find a product that makes it easier to live. When you have a home that is sucking your pension up and leaving little for fun, entertainment, or daily living downsizing to a smaller home might be necessary. With Hodge Lifetime you can sell your home after five years of taking out the equity release helping to increase the available cash you have.

During the sale you pay off the equity mortgage, keep any additional funds made from the sale and can move into a smaller community that saves you money with lower daily living expenses.

This versatile firm also offers a chance for people to pay back 10% of the original amount borrowed at any given time of the year, as long as the plan has been in existence for a year. Therefore, this can be used as a capital and repayment mortgage over a 16-17 year period. Additionally, there have also been plans by this firm to come up with new products so that they can target baby boomers that, at this moment in time, are approaching retirement age.

Therefore, Hodge Lifetime is a great firm that often offers products that will attract any person looking for a great equity release firm. Nonetheless, if you are looking for such a firm, it is important that you make sure that you carry out a little research so that you can get the best firm in the market today.

Hodge is just one firm offering affordable, flexible equity release plans. They are not a firm for every borrower. Everyone has different needs and while some aspects might be similar there may be just enough different to require a different firm.

Tips for comparing firms:

• Check to see if the firm you have chosen or are speaking with is a part of SHIP (Safe Home Income Plans).
• Also make certain the firm is regulated by the FCA (formerly the FSA) which is the financial regulatory body for the United Kingdom.
• Explore the different plan options like home reversion, interest only, drawdown, enhanced, and standard lifetime equity release schemes.

Different schemes can offer different lump sums, monthly instalments and total amounts. You may find that you like Hodge Lifetime plans over all the other options or you may find your situation is better for the enhanced lifetime plan. This type of plan affords a larger lump sum for those with a shorter longevity due to illness. You can get cash when you need it rather than when you are no longer around to enjoy it. Given the variety of options out there with various advantages and disadvantages, you should always consult a financial adviser and ask your family for their opinion.