This will lead to a reduction in its lending for new equity release plans but it will continue to write top ups and honour drawdown facilities for existing customers.
Hodge Lifetime will concentrate on developing its growing pension annuity business.
The proposal to reduce equity release lending has been taken as a prudent measure in recognition of the impact of the more stringent capital and liquidity requirements being applied to financial institutions, arising from the credit crunch.
The reduction in the number of equity release product providers over the last year has provided clear evidence that financial institutions generally are finding that the impact of more stringent capital and liquidity requirements is having a detrimental effect on their capacity to do business, particularly in the equity release sector.
As part of its proposals Hodge Lifetime has reviewed its staffing resources within its equity release arm with the prospect that a number of redundancies may be required. All employees affected have now entered into consultation with Hodge Lifetime which would wish to achieve redeployment of resources wherever possible.
