The first-of-its-kind, fixed-for-life RIO mortgage is available exclusively through the broker channel to customers aged 50 to 88.
The maximum loan to value is 70 per cent and the arrangement fee is £995. A fee-free product is also available at 4.55 per cent.
The offer includes free valuation up to £1m and the maximum property value is £3m.
Customers can overpay by up to 10 per cent and will not be liable for early repayment charges if they downsize.
The loans are available for reasons including gifting to family members, home improvements, debt consolidation and holidays.
“Our goal is to drive innovation in the market and to meet the changing needs of retired people. The fixed-for-life RIO is the next step as we build a reputation for innovative mortgage products,” said Matt Burton, managing director of mortgages at Hodge (pictured).
The Financial Conduct Authority gave the green light to RIO products in March 2018.