Hodge Lifetime is one of the most reputable providers in the equity release marketplace. In fact, Hodge created and administered the very first equity release product. There are several unique features to the Hodge Lifetime Flexible Repayment Plan.
Of course, the most unique aspect of this product is its flexible repayment plan. With this feature, the homeowner is able to repay 10% of the initial amount borrowed, along with 10% of any additional withdrawals, each and every year without any early repayment charges. This kind of repayment structure is quite rare in the equity release marketplace. This feature alone makes this Hodge product especially attractive to those homeowners who want to release equity from their home, but also want the ability to repay the loan, at least in part, before the sale of the home. It is quite possible to avoid any early repayment fees with this product which is rare with lifetime mortgage products.
While it is possible to avoid early repayment fees with the Flexible Repayment Plan, there are a few instances in which this could occur. For example, this may happen if the homeowner changes their residence within the first five years of the lifetime mortgage scheme. In this case, the lender has a penalty that starts at 5% for those who move in the first year, and decreases all the way to 1% over the course of that first five year period. However, there are some excellent protections in place if the homeowner wants to downsize. This lender allows the homeowner to repay the full balance of their loan if they move after the first five years following the equity release. If the homeowner does not choose to downsize or move from their current residence, there is a different set of guidelines that may apply for early repayments – ask for further details.
There are other unique features to this product, aside from the repayment structure. With this product, the homeowner is able to release some of their equity, while reserving the rest of their allowable release in a cash reserve. This drawdown facility can be used for future withdrawals, if and when the homeowner needs additional funds. With this product, the initial withdrawal amount must be £20,000.
In order to qualify for the Flexible Repayment Plan product with Hodge Lifetime, the homeowner must be at least 60 years old. The home must also have a minimum valuation of £100,000 and must be located in Wales, England, or Scotland.