The provider will offer its interest-only mortgage for borrowers aged over 55 to all directly authorised mortgage clubs and appointed representative networks that choose to offer the product, Steve Cox, business development director at Hodge Lifetime, said.
Customers up to the age of 85 can apply for the deal, while the product’s maximum term is available up to the age of 95 or the youngest borrower’s 95th birthday, if the loan is taken out by more than one person.
Hodge, which has made its mark in the industry to date offering equity release products, launched its mainstream solution for older borrowers in April, with initial distribution through Legal and General’s key partner accounts.
TenetLime has also since signed up with Hodge and the provider is in conversation with a number of other networks to prepare wider distribution.
Cox explained that a number of advisers have been using the product to contact interest-only customers coming to the end of their mortgage term.
“What a lot of the advisers are doing is going back to their interest-only legacy back-books, particularly those that are within two to five years from the end of term, and checking the customer’s exit strategy.
“This product might suit existing interest-only customers, particularly for those who are with lenders that are not currently able or keen to extend their current term into later life,” he added.
“Of course some advisers are looking at this product for some of their customers who might not fit the high street’s criteria, but it’s quite interesting that a number have picked up that it’s a good option for back-book customers as well.”
