Hodge pulls back from new equity release lending
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Hodge Lifetime is to focus on its pensions and annuity business, and rein in new equity release lending.
The lender has placed a number of staff into consultation as a result of the move.
It says the plan to reduce equity release lending is a prudent measure in light of the stringent capital and liquidity requirements imposed on financial institutions due to the credit crunch. It will continue to honour drawdown facilities for existing customers.
It says the fall in the number of equity release providers in the past year shows that new capital and liquidity requirements are having a detrimental effect on many financial organisations’ capacity to do business, particularly in the equity release sector.
Stonehaven, Saffron and Coventry Building Society all suspended equity release lending in 2009, along with Northern Rock. But Retirement Plus recently started to offer further advances and More 2 Life has re-entered the sector.
