Hodge Lifetime winds down equity release lending
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Hodge Lifetime is winding down new equity release business to focus on growing its presence in the annuity market.
The firm says it will continue to write top ups and honour drawdown facilities for existing customers. Redundancies are likely in that arm of the business.
Hodge says it has taken the decision as a “prudent measure” due to the more stringent capital and liquidity requirements being applied to financial institutions since the credit crunch.
Under its proposals, Hodge says it has reviewed its staffing resources and a number of redundancies are likely. All employees affected have entered into consultation with the firm.
Just Retirement, Aviva and LV= are the major players still competing in the sector. Stonehaven suspended equity-release lending in March.
Money Marketing first revealed Prudential’s decision to pull out of the market in November 2009, which followed Northern Rock, Saffron Building Society, Coventry Building Society and Retirement Plus which all previously suspended lending.
In Retirement Services went into administration early last year. Lenders relying on wholesale funding without an annuity book have been worst hit.
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