Hodge Bank mortgages reviewed

Hodge Bank mortgages are designed for borrowers that many mainstream lenders turn away, particularly those aged 50 and over who are approaching or already in retirement. Hodge has spent over six decades building expertise in later life lending, and its manual underwriting process means individual circumstances get a proper look rather than an automated decline.

We're a broker, not a lender. We connect you with specialist brokers and lenders who understand later life lending, rather than lending money directly ourselves.

If you're approaching retirement or already retired and finding it hard to get a mortgage, Hodge could be worth considering, but they aren't the right fit for everyone.

Key strengths

• No maximum age limit on Resi Retire products
• Lending available from age 21 up to and into retirement
• Manual underwriting considers complex income situations
• Early Repayment Promise waives charges if you sell and move out

Key weaknesses

• Intermediary-only - you'll need to go through a broker
• Higher rates than mainstream lenders
• Limited branch network (online and phone-based)

Best for: older borrowers aged 50+, those with complex income, retirement interest-only needs, and holiday let investors.

Hodge Bank, officially Julian Hodge Bank Limited, is a specialist lender headquartered in Cardiff, Wales. Founded in 1962 by Sir Julian Hodge, the bank has grown from its origins in insurance and money lending into a market leader in later life mortgages.

The bank operates across three main business areas: savings accounts, specialist mortgages, and real estate finance. For mortgage purposes, Hodge focuses specifically on borrowers who don't fit mainstream lending criteria, particularly those approaching or in retirement.

What sets Hodge apart from high-street banks is its manual underwriting approach. Every application is reviewed by a human underwriter who considers individual circumstances rather than relying solely on automated systems. This means complex income situations, such as pension drawdowns, rental income, or self-employment with variable earnings, can be properly assessed.

Hodge offers several mortgage product ranges designed for different borrower needs. Here's what's available.

Resi mortgages (ages 21+)

Standard residential mortgages for borrowers from age 21 up to retirement age. These work like traditional mortgages with a fixed term and can be taken on either a repayment or interest-only basis.

• Loan amounts from £25,000 to £3 million
• Up to 95% loan-to-value on repayment (purchase only), 80% on interest-only
• Terms up to 40 years
• 2-year and 5-year fixed rate options
• Property values from £100,000

Resi Retire mortgages (ages 50+)

Designed for borrowers aged 50 and over who want to borrow up to and into retirement. This is Hodge's flagship product range for later life lending.

• No maximum age at term end (subject to affordability)
• Loan amounts from £25,000 to £3 million
• Up to 95% loan-to-value on repayment (purchase only), 80% on interest-only
• Terms up to 41 years
• Employed and self-employed income considered up to age 80
• Pension income, rental income, and investment income accepted

The Resi Retire product addresses a common problem: mainstream lenders typically require mortgages to be repaid by age 70-75, which limits options for older borrowers. Hodge removes this barrier by focusing on affordability rather than an arbitrary age limit.

Retirement interest-only (RIO) mortgages

RIO mortgages are designed for borrowers over 50 who want to pay only the interest each month, with the capital repaid when they die, move into long-term care, or sell the property.

• Minimum age 50, maximum age at application 88
• No term end date - runs for life
• Up to 75% loan-to-value
• Interest-only payments only
• Loan amounts from £25,000 to £1 million
• Repayment triggered by death, long-term care, or property sale

RIO mortgages can be a useful alternative to equity release for borrowers who have enough income to service interest payments but don't want the capital repaid from their estate on death.

Holiday let mortgages

For investors purchasing or remortgaging properties for short-term holiday rentals.

• Up to 75% loan-to-value
• Minimum property value £100,000
• Maximum lending £1.5 million
• Rental income coverage: minimum 140% of interest payments at the stress rate
• Available for non-portfolio landlords (three or fewer mortgaged properties)
• Properties in England, Scotland, and Wales

Hodge's rates are generally higher than mainstream high-street lenders, reflecting their specialist focus and manual underwriting. That said, for borrowers who can't access mainstream products because of age or complex circumstances, Hodge's rates are competitive within the specialist later life market.

Across most of Hodge's ranges, rates vary by loan-to-value band, with lower loan-to-value deals typically priced more favourably than higher loan-to-value deals. You can usually choose between a fee-free option or paying an arrangement fee for a lower rate. Which works out cheaper depends on your loan size and how long you intend to keep the mortgage, so it's worth asking an advisor to run the numbers for your circumstances.

At the end of your fixed period, you'll move onto Hodge's standard variable rate, which is typically higher than the rate you were paying. It's worth speaking to an advisor about refixing or remortgaging before your deal ends, since payments can increase substantially on the standard variable rate. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

If mainstream lenders aren't an option for you, comparing Hodge against other specialist later life lenders such as LiveMore, Family Building Society, or Leeds Building Society is more useful than comparing against a high-street bank.

Beyond interest rates, you'll need to factor in Hodge's fee structure when working out the total cost of borrowing.

Arrangement fees

Hodge offers products with different fee structures:

You can typically choose between paying a higher arrangement fee for a lower rate, or paying a lower fee (or no fee) for a slightly higher rate. An advisor can help calculate which option works out cheaper over your intended borrowing period.

Valuation fees

Hodge charges for property valuations. Fees depend on the property value:

Legal fees

You'll need a solicitor for the mortgage completion. Hodge doesn't provide legal services, so you'll need to arrange your own or use a recommendation from your broker. Budget £800-£1,500 for standard legal work.

Early repayment charges

Hodge applies early repayment charges if you exit your mortgage during the initial fixed period.

On 2-year fixed products, the early repayment charge is a flat 3% of the loan balance across both years.

The Hodge Early Repayment Promise: if you sell your property and move out permanently, Hodge waives the early repayment charge entirely. This applies to Resi Retire, RIO, and Holiday Let mortgages, and provides useful flexibility if your circumstances change.

Your total cost of borrowing depends on your loan amount, term, chosen rate, and fee option. An advisor can put together a personalised illustration showing what you'd pay in fees and repayments before you commit to anything.

One of Hodge's key advantages is flexible eligibility criteria. Here's what they consider.

Age requirements

For employed or self-employed income, Hodge will consider income up to age 80, subject to underwriter discretion and occupation.

Income assessment

Hodge takes a flexible approach to income, accepting:

• Employment income (PAYE)
• Self-employment income (with 2+ years' accounts)
• Pension income (state, private, and workplace)
• Investment income
• Rental income (no upper age limit)
• Certain benefits (discuss with your advisor)
• Foreign income (case-by-case)
• Mixed income from multiple sources

For Resi Retire products, Hodge assesses affordability using both current income and projected retirement income. This means if you're still working but approaching retirement, they can factor in your expected pension when assessing the mortgage.

Loan-to-income: Hodge recently increased its loan-to-income ratios, allowing borrowers with incomes above £40,000 to access up to 6 times income, compared with a standard loan-to-income ratio of 5.5 times income.

Property requirements

Hodge accepts properties with annexes and has recently enhanced its criteria for cross-generational living situations where families share a property.

Credit history

Hodge isn't a "bad credit" lender, but it does consider applications with some credit history issues on a case-by-case basis. In our experience:

• Minor credit issues (missed payments over 2 years old) are often acceptable
• Defaults are considered based on age and amount
• Significant adverse credit is likely to be declined

For borrowers with serious credit issues, another specialist lender may be more appropriate. If you're struggling with debt or want free, independent guidance, MoneyHelper (moneyhelper.org.uk, 0800 138 7777) offers impartial money guidance backed by government.

To help you decide if Hodge is right for you, here's how it stacks up against other later life lending specialists.

Hodge vs LiveMore

Choose Hodge if: you're under 50 and want to plan ahead, need a higher loan-to-value, or want the Early Repayment Promise protection.

Choose LiveMore if: you're over 50, want equity release or lifetime mortgage options, or need their specific income assessment flexibility.

Hodge vs Family Building Society

Choose Hodge if: you want products specifically focused on later life lending, with the Early Repayment Promise.

Choose Family Building Society if: you need Joint Borrower Sole Proprietor arrangements, a fuller buy-to-let range, or their specific underwriting flexibility.

Hodge vs Leeds Building Society

Choose Hodge if: you need a higher loan-to-value on a RIO mortgage, a larger loan amount, or their specific underwriting approach.

Choose Leeds Building Society if: you prefer building society service, want branch access, or their specific product features suit you.

Since Hodge is intermediary-only, you can't apply directly. Here's how the process works through a broker.

Here's a balanced view of where Hodge Bank mortgages fall short, alongside the advantages covered above.

Disadvantages

• Higher rates than mainstream lenders: if you can access mainstream lenders, their rates will typically be lower. Hodge's value is for borrowers who can't access those options.
• Intermediary-only: you must use a broker, which adds a step to the process. Some borrowers prefer direct lender relationships.
• No mobile app: Hodge's online presence is functional but basic. If you want a slick app-based experience, you may be disappointed.
• Limited product flexibility: within each range, options are relatively standardised. Some competitors offer more rate term options.
• Processing times: manual underwriting means more thorough reviews, but can also mean longer processing times compared with automated lenders.
• Standard variable rate: Hodge's standard variable rate is relatively high, so it's worth refixing before your deal ends.

Hodge has over 2,000 reviews on Trustpilot with an overall positive rating. Most reviews relate to their savings products, but mortgage customer feedback is generally consistent with these themes.

What customers praise

• Helpful staff: many reviewers highlight the knowledge and helpfulness of Hodge's team, and the ability to speak with real people rather than automated call systems.
• Clear communication: customers appreciate clear explanations of terms, rates, and processes.
• Efficient service: for straightforward cases, the process runs smoothly with timely updates.
• Problem resolution: when issues arise, Hodge's executive team is noted for swift resolution.

What customers criticise

• Processing delays: some mortgage customers report longer-than-expected processing times, particularly for complex cases.
• RIO assessment concerns: a small number of reviewers express frustration with RIO affordability assessments that didn't match their expectations.
• Limited flexibility on fixed-term products: early access or changes to fixed-term products can be difficult.

Ideal candidates

• Borrowers aged 50+ approaching retirement: if you need a mortgage that will run into your retirement years and mainstream lenders have declined you due to age, Hodge's Resi Retire product is designed specifically for you.
• Retirees with pension and investment income: if you have reliable retirement income and want to mortgage or remortgage your home, Hodge's flexible income assessment is valuable.
• Those seeking RIO as an equity release alternative: if you can afford monthly interest payments and want to avoid compounding interest eating into your estate, RIO is worth considering.
• Self-employed borrowers with complex income: manual underwriting can properly assess director salary and dividend combinations, variable profits, and multiple income streams.
• Holiday let investors: Hodge's holiday let mortgage is competitively priced with sensible criteria for the short-term rental market.
• Borrowers who value the Early Repayment Promise: if your circumstances might change and you'd want to sell without penalty, this protection is valuable.

Poor fit candidates

• Younger borrowers with mainstream options: if you're under 40 with standard income and good credit, mainstream lenders will likely offer better rates.
• Those focused purely on the lowest rate: Hodge's rates reflect specialist underwriting costs, so rate-focused borrowers should explore mainstream options first.
• Borrowers wanting a direct lender relationship: if you'd prefer not to work through a broker, Hodge isn't for you.
• Those with significant adverse credit: while flexible, Hodge isn't a subprime lender. Severe credit issues are likely to need a specialist bad credit lender.
• Portfolio landlords: Hodge's holiday let restriction to non-portfolio landlords limits options for larger investors.

Decision checklist

Hodge could work for you if:

• You're aged 50+ and approaching or in retirement
• Mainstream lenders have declined you due to age
• You have complex or multiple income sources
• You want an interest-only option into retirement
• The Early Repayment Promise adds value for your situation
• You're investing in a holiday let

Consider alternatives if:

• You can access mainstream lender rates
• You have significant adverse credit
• You want direct lender access without a broker
• You need portfolio landlord products
• Processing speed is your top priority