Hodge lifts height restrictions for mortgage lending
Hodge has made a significant change to its lending criteria by removing height restrictions, a move that will now allow the specialist lender to accept mortgage applications for homes in England located in privately built properties over six storeys high.
This adjustment is particularly pertinent for those looking to purchase properties in major cities such as London, Manchester, and Birmingham, where high-rise living is more common.
Many lenders have traditionally been hesitant to finance such properties, but Hodge’s criteria change opens up new opportunities.
Applications are eligible if they are within developments constructed by one of the 51 developers who have signed the ‘Developer Remediation Contract’ with the Government, or by one of the four developers recognized for building schemes unaffected by cladding issues.
Additionally, Hodge has confirmed that it will accept applications for homes built using Modern Methods of Construction (MMC), subject to a review by its in-house surveyor and head of property risk, Jonathon Matthews.
This move is part of Hodge’s commitment to accommodate a wider range of property types in its lending portfolio.
To facilitate this process, Hodge has invested in its in-house surveying team to assess and review some of the more unusual property types at the initial application stages.
Emma Graham, business development director at Hodge, said: “The enhancements were the latest in a long line of adjustments intended to support of brokers who are working harder than ever to support their own customers in the moments that matter.
“At Hodge, we pride ourselves on being experts across the markets we serve, and property is a big part of this.
“This is why we’ve decided to take on our own in-house property team to support and review applications at the very beginning of the process, to help save our brokers’ time and hopefully give their customers a quick and easy answer at application.”
Jonathon Matthews, head of property risk at Hodge, also spoke about the importance of this change: “We understand many professionals getting their foot on the property ladder in some of the UK’s major cities will be looking at property in high rise buildings – and some lenders are reluctant to approve these because of the issues and liability around the cladding of these buildings.
“We’ve examined the market, looked at the contracts put in place by Government around those issues, and now, with our own property experts and surveyors at hand, feel we’re in the right place to lend on properties above the sixth floor.
“We hope these enhancements will give our intermediary partners the help and expertise they need to get quick lending decisions for their clients.”