Questions & Answers
How much can I borrow?
How much we are able to advance to customers is based on a variety of criteria including the value of your home, your age and gender when taking out the plan. The older you are the more you will be able to borrow as your life expectancy is shorter. Please see the individual product leaflet for more information.
I'm in poor health, can I borrow more?
Because the lump sum available from an equity release scheme is based upon a number of factors, one of which is life expectancy, you may be able to apply for enhanced terms. For further information please speak with your financial adviser.
Should I release the maximum cash sum I am allowed?
You should only take the maximum amount if you really need it. The more equity you release from your home the higher the cost to you. If, having taken an initial lump sum you think you may need more money in the future consider the Hodge Equity Release Flexible Mortgage Option, which allows you access to a Cash Reserve from which you could withdraw more monies as and when you require.
Who will own my property once the equity release plan is completed?
Lifetime Mortgages - the ownership of the property always remains with you.
Home Reversion Plan - part of the ownership of your home will belong to Hodge Equity Release.
Home Reversion Plan - part of the ownership of your home will belong to Hodge Equity Release.
How does the rolling up of interest work?
On lifetime mortgages no repayments are made through the period of the loan. Instead, interest is added to the amount owed each month and repaid when the loan is redeemed. Interest is charged at a fixed rate, applicable at the time of application, calculated daily and added to the loan each month.
Does interest roll up the same way for the Flexible Mortgage Option?
Yes. However, by choosing a Flexible Mortgage Option you may pay less interest over the life of the plan. This is because you may choose to take a lower initial lump sum and make future withdrawals only when required. Interest is only charged on the amounts you have borrowed.
Will I be responsible for the upkeep of the property?
All our equity release schemes require you to ensure that:
- your property is maintained and kept in good repair.
- all property related bills such as council tax, service charges, heating and insurance are paid by you.
What happens if I want to move house?
If you decide to move, you should be able to take your equity release plan to a new property, provided it meets our lending criteria. If the new property is of a lower value, the terms of your equity release plan may need to be reviewed. Further details will be provided in a personalised illustration.
Please note that you will of course have to meet the costs of moving house.
Please note that you will of course have to meet the costs of moving house.
Will taking out an equity release plan affect my tax position or my entitlement to certain state benefits?
It is important that you discuss these matters carefully with your financial adviser as depending on your personal circumstances it could affect both.
Can I take more if my property increases in value?
Further advances are available, generally after 3 years and subject to a survey and the prevailing lending criteria at that time.
Do I need to involve my family when making a decision?
Whilst not a requirement, we do feel it is important to consider discussing your plans with your family as any future inheritance will be affected.
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