We’re removing the Cash Withdrawal Option
We’re removing the Cash Withdrawal Option on your Flexible Lifetime mortgage from 19th May 2025.
If you have a Flexible Lifetime mortgage with us, which gave you an initial lump sum payment along with the option for further cash withdrawals. From 5th May 2025, you’ll no longer be able to make withdrawals from your open cash reserve, as we’re removing this facility.
If you’re affected by this, we’ve written to you. If you don’t plan to use your Cash Withdrawal Option before this facility is removed, you don’t need to do anything. The other terms of your mortgage deal will stay the same.
If you would like to use your Cash Withdrawal Option before this change takes effect, you have until 5th May 2025 to withdraw from your open cash reserve.
If you have any questions or need further support, please call 0800 731 4076 and a member of the team will be happy to help. Alternatively, you can email us on [email protected].
Transfer of Lifetime Mortgage Servicing
We are currently transferring the servicing of lifetime mortgages to other providers. If you are an affected customer, you will receive a letter with all the necessary information regarding the transfer of your account. As accounts are transferred, we will list the contact details of the providers below, if you have not received a letter please continue to contact us directly.
Just:
Contact Number: 01737 233297
Customer Website: www.wearejust.co.uk
Postal Address: Mortgage Administration, Just, Enterprise House, Bancroft Road, Reigate, Surrey, RH2 7RP
Customer email address: [email protected]
Pure Retirement:
Contact Number: 0113 866 2844
Website: www.pureretirement.co.uk/about-us/account-servicing/
Postal address: 2200 Century Way, Thorpe Park, Leeds. LS15 8Z
Newcastle Building Society
Contact number: 0345 6005163
Postal address: 1 Cobalt Park Way, Wallsend, NE28 9EJ
Customer email address: [email protected]
Website: www.newcastle.co.uk
Gilt Rate Information
The Variable Early Repayment Charge is a charge that applies to selected variations of the Lump Sum Lifetime Mortgage and Flexible Lifetime Mortgage. We put in place fixed rate funding to match the expected duration of each fixed rate loan, and the variable early repayment charge is calculated to reflect the cost of the mismatch that arises if a loan is repaid earlier than we expected.
More information about the variable early repayment charges, and the formula we use to calculate it, can be found in our Early Repayment Charges factsheet.
What is a 15-year gilt rate?
The 15-year gilt rate is the rate quoted in the money markets for borrowing funds at a fixed rate of interest over 15 years and reflects the funding costs incurred by Hodge Lifetime.
Where does gilt rate data come from?
We aim to make the Variable Early Repayment Charge calculation as transparent as possible. Gilt rates are set daily based on traded prices in the financial markets. Whilst this data is not publicly available, we will publish the relevant data at the start of each month on our website (see below).
How do we use the 15-year gilt rate?
We record the 15-year gilt rate on the first working day of each month.
When a loan is redeemed early, we will look at the gilt rate that applied in:
- The month the loan was taken out;
- The month the loan is repaid.
If the rate has fallen between these dates, this fall will be used in the variable early repayment charges formula. We will guarantee each variable early repayment charge calculation for two weeks from the date it is prepared.
15-year gilt data
The table below shows the 15-year gilt rate on the first working day of each month:
| Month | 2023 | 2024 |
|---|---|---|
| January | 3.99% | 3.92% |
| February | 3.70% | 4.17% |
| March | 4.12% | 4.39% |
| April | 3.78% | 4.23% |
| May | 3.99% | 4.61% |
| June | 4.44% | 4.56% |
| July | 4.53% | 4.44% |
| August | 4.5% | 4.26% |
| September | 4.59% | |
| October | 4.75% | |
| November | 4.83% | |
| December | 4.51% |