Hodge expands interest-only range to 80% LTV
Hodge says the extended criteria will help borrowers maximise their affordability.
Hodge Bank will now accept interest-only mortgage applications up to 80% LTV to help borrowers expand their affordability.
The change applies to Hodge’s entire Resi and Resi Retire range, regardless of the borrower’s age.
Hodge lends from age 21, up to and into retirement with a flexible approach to underwriting to reflect case complexity and diverse income assessment.
There are no minimum income requirements but to access interest-only at 80% LTV borrowers need a minimum property value of £500,000.
Borrowers can access 80% LTV interest-only loans up to £2m and 75% LTV up to £3m with a maximum LTI of 5.5.
Emma Graham, business development director at Hodge, said: “It’s essential for us to keep an open dialogue with brokers to help us understand the challenges mortgage customers are facing. 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.”
Rob Ford, head of mortgage origination, added: “We know customer needs are changing. Whether that’s older borrowers hoping to make the most of retirement, or younger borrowers earning income from multiple sources.
“Lifelong lending is slowly becoming the rule rather than the exception and Hodge Bank is doing what it can to make those borrowers’ aspirations a reality.”
