Our Downsizing Protection: Explained

55+ Mortgage 55+ RIO Equity Release

What does our downsizing protection really mean, how does it work, and why is it a good thing for customers? Our National Account Manager, Wes Regis, answers some of your FAQs.

What is Hodge downsizing protection?

So ten years ago, Hodge brought out a feature called ‘downsizing protection’ that was attached to our equity release products, and we were the first to bring this feature to market. Mortgages where downsizing protection is a feature, the way it works is that clients can sell the security property, sell their house, and pay Hodge back – with no early repayment charges.

Do clients have to be downsizing?

Although the name on the tin is downsizing protection, the reality is that the rules and regualtions around it are that the client just needs to be selling their home, and moving out. So, they could be moving out of the house and into a mansion – as long as they’re physically leaving the security property and clearing the loan, then it would be ERC free, from day one.

What kind of customer benefits from downsizing protection?

Customers that these products are aimed at are typically a little bit older – they’re 50 plus. As they get older, it may be part of their life plan to downsize to a more manageable property, somewhere that they can maintain a little bit more easily. They may be thinking about what happens further down the line if they need to leave that property, so with our downsizing feature they’ve got the peace of mind that, further down the line, they’re not going to be penalised for paying the loan back.

So, for the last ten years, Hodge has had downsizing protection associated with our equity release mortgages. Now, we’re also attaching it to our fixed-for-life retirement interest only (RIO) mortgage as well so, once again, Hodge is innovating, and bringing this feature into the main stream mortgage market.

What mortgages does our downsizing protection apply to?

We offer our downsizing protection on our:

  • Lump Sum Lifetime Mortgage Range
  • Flexible Lifetime Mortgage Range
  • The Fixed-for-Life RIO

Does anyone else offer this?

Other lenders do offer downsizing protection, but they don’t offer it completely ERC free, from day one. Hodge are the only lender to do that.


Wesley Regis

For more information about any of our products or their features, contact Wes, or click to find your local BDM.



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