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Hodge overhauls RIO offering with lower age limit and higher LTV

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  • 07/05/2019
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Hodge overhauls RIO offering with lower age limit and higher LTV
Hodge Lifetime has overhauled its retirement interest-only offering (RIO), including increasing its maximum loan-to-value (LTV) limits and introducing fee-free options.

 

The lender is also cutting rates across its RIO and over-55 mortgages and introducing a lower age limit of 50 years old.

From today, Hodge’s RIO mortgages will allow increased LTV limits of 70%, fee-free options and free valuations, penalty free overpayments and free legals.

Hodge said the changes would make the mortgages more accessible and that it would become “the first dedicated later life provider to reduce its RIO lower age limit to just 50 years old”.

The two-year discount RIO mortgage with an application fee comes with a 3.1 per cent interest rate, while the fee-free version has a 3.35 per cent rate.

The two-year fixed versions come with 3.2 per cent and 3.45 per cent rates respectively, while the 55+ two-year fixes are available at 2.99 per cent and 3.30 per cent respectively.

 

Customer needs develop

Hodge managing director of mortgages Matt Burton (pictured) said the changes to its offering would give customers a new level of flexibility.

“It’s been almost a year since Hodge launched one of the very first RIO mortgages, but as our customer’s needs develop, we strongly believe we need to evolve the market and the product we offer to make sure we’re meeting them,” he said.

He added that the lender had listened extensively to feedback from advisers and customers and was confident that the new offering would meet the needs of the changing market.

 

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