The lender has upped its LTV to 80% LTV, which it said is the latest in a raft of changes introduced to make its underwriting more flexible.
This LTV change applies to Hodge’s entire Resi and Resi Retire range, regardless of the borrower’s age.
The sale of property is accepted as a repayment strategy up to 75% LTV, with the remaining 5% achieved through a second repayment vehicle.
The application is assessed on an interest-only basis for affordability, rather than capital repayment, and the mortgage is available up to and into retirement. There are no minimum income requirements, and to be accepted at 80% LTV, the borrower’s property must be worth at least £500,000.
Emma Graham (pictured), business development director for Hodge, said: “It’s essential for us to keep an open dialogue with brokers to help us understand the challenges mortgage customers are facing.
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“Time and again, we hear affordability is proving a sticking point for many clients; we hope increasing the LTV on interest-only mortgages will help break some of that stickiness down.”
Nationwide has also made changes to its interest-only and part and part proposition.
Interest-only lending will be extended to all buyer types up to 75% loan to value (LTV) and up to 85% LTV for part and part deals.
Repayment options have also been widened to include UK-based savings, investments, pension funds and other properties. Previously, the accepted repayment option was the existing sale of a main residence.
