Hodge Lifetime rethinks equity release strategy

Retirement solutions provider Hodge Lifetime has decided to give its equity release segment an overhaul in a bid to focus more intently on its annuity offering.

The company has revealed it will cut back on lending for new equity release plans. However, it will honour drawdown facilities and write top-ups for existing equity release customers.

According to the company, more stringent capital and liquidity requirements since the start of the global economic downturn are behind its decision. A number of prominent providers have dropped out of the equity release market completely over the last two years.

A number of employees are expected to be affected by the restructuring plan and negotiations are already believed to be underway. Hodge says it hopes to redeploy as many members of staff as it can.