Hodge has made further cuts to its later life lending products, with rates across its Retirement Interest Only (RIO) mortgage range set to drop by up to 0.40% as of this Friday, the 27th of October.
Alongside increased loan-to-incomes (LTIs) and affordability related criteria enhancements to new purchase and pound-for-pound remortgage applications, the specialist lender has already announced a reduction across its 50+ mortgage rates by up to 0.30% this month.
Now its suite of RIO products is set to follow suit, with new rates including a 2-year fixed RIO up to 75% loan-to-value (LTV) at 6.85% with £995 fee, as well as a 5-year fixed RIO up to 75% LTV at 6.55% with £995 fee.
Emma Graham (pictured), business development director at Hodge, said: “It’s been a huge boost to see the markets settle following the base rate announcement last month, and to be putting further rate reductions for the benefit of our customers borrowing into later life into action as a result.
“We know there is an enhanced need at the moment to support consumers facing affordability and cost of living challenges within the current climate, and this is another way we can help brokers continue to secure the best outcome for their customers regardless.”
To further support customers taking out these products, Hodge also recently enhanced its criteria to accept a life insurance policy to support affordability under the death stress test, and also increased income multiples on a purchase and remortgage on later life products too.
Graham added: “People are living longer and, while affordability in the market continues to bring its challenges, the changes we have worked to make across October are ultimately there to provide greater flexibility and support more people to stay in their homes in the process.
“The reduced rates announced in line with our RIO product range today is a reflection of Hodge’s commitment to working with its intermediary partners to create products fit for their clients, and yet another example of how Hodge continues finding ways to help its customers in the moments that matter.”
