Mortgage News
Hodge ups LTVs to help more interest-only borrowers
Hodge has increased loan to values (LTV) on its two and five-year fixed rate over 50s mortgages to help borrowers remortgaging interest-only deals.
The lender now offers a maximum LTV of 85 per cent on the repayment deals, up from a previous cap of 75 per cent.
Emma Graham (pictured), business development director at Hodge, said many of the borrowers using the products are remortgaging interest-only mortgages that are coming to maturity.
Some customers capital raise at the same time for a variety of reasons, including home improvements and intergenerational gifting.
She added: “The FCA predicts that around 40,000 interest only residential mortgages will mature every year until 2032, with the majority of those interest-only borrowers being aged 65 and over.
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“This, coupled with our own research, has helped us make this latest change to our 50+ repayment mortgage products. Again, it’s about flexibility and giving our customers what they need at this stage of their lives to help them achieve their financial goals.”
Hodge’s 50+ repayment five-year fix has a rate of 3.6 per cent, or 3.75 per cent without fees.
And the two-year equivalent has a rate of 3.49 per cent, or 3.6 per cent fee-free.
The mortgages allow earned income up to the age of 80, while income multiples up to six times are considered for like-for-like remortgages.