View more on these topics

Hodge Lifetime considering drawdown lifetime mortgage launch


Hodge Lifetime is considering launching a drawdown lifetime mortgage that allows customers to release smaller chunks of cash instead of receiving the full agreed amount at the outset.

Hodge has not yet decided on the product features and has no firm launch date.

However, Mortgage Strategy understands the provider would offer customers the ability to pay off up to 10 per cent a year without incurring early repayment charges, a feature it offers on its standard lump sum lifetime mortgage. Customers can repay the loan in full without incurring ERCs after five years if they sell the property.

Currently, Just Retirement, Aviva and LV= offer drawdown lifetime mortgages.

Last week, Hodge reduced the rate on its lump sum lifetime mortgage by 0.3 per cent, from 6.13 per cent to 5.83 per cent.

Hodge Lifetime sales director Jon Tweed says: “A drawdown product is something we are looking at. Core to our ethos at Hodge Lifetime is offering flexible products to our customers so a drawdown would take what we are offering already and make it more flexible. If we decide to go ahead with it, it would build on our already flexible offering.”

Equity Release Advice managing partner Stuart Wilson says: “A drawdown facility is always a good thing. People have a multitude of different needs in retirement and there could be various different reasons you would need to release small amounts of cash, without having to release a big amount up-front. Some people do not need a huge amount of cash up front.”

In 2010, Hodge reduced its equity release lending levels by half as it “refocused” on pension annuities. But earlier this year Hodge said it was looking to increase its equity release presence.


Vertex appoints HML head for development role

Financial services outsourcer Vertex Financial Services has appointed HML head of business development Mark Webster as its new director of business development. Webster was at HML for 16 years. His role at Vertex will be to support sales director Adam Oldfield and grow the firm’s portfolio, which includes ING, Virgin, BM Solutions, Tesco and JP […]

Labour to consider mansion tax proposals

Shadow Chancellor Ed Balls is reportedly considering a mansion tax on the UK’s largest homes. A wealth tax on property is a policy proposed by the Liberal Democrats but, in an interview with The Independent, Balls admitted he is looking at the idea as part of a strategy to boost the economy. Balls told the […]

New firms face record wait for FSA approval

New financial services firms are having to wait over five months to be authorised by the FSA, more than three times as long as they had to wait before the financial crisis. A freedom of information request from law firm Reynolds Porter Chamberlain reveals firms are having to wait a record 22.9 weeks for authorisation, […]

Avelo’s fixes glitch which caused Exchange Portal crash.

Avelo’s Echange Portal is working again after crashing earlier today. Earlier this afternoon, the portal crashed meaning advisers could not acess its services. Avelo has now fixed the glitch which caused the system to crash. The service allows intermediaries to access real-time quotes and commission details direct from providers and to compare different products for […]


News and expert analysis straight to your inbox

Sign up