Hodge Lifetime, a firm that traditionally lends to equity release customers alone, has entered the mainstream residential mortgage market from this week on, having now launched an interest only product aimed specifically for borrowers over the age of 55.
This allows customers up to the age of 85 to apply for the deal, as well as offering a maximum product term up to the age of 95 if taken out by more than one person. This comes with the news that further launches across the intermediary market will be revealed in the coming weeks.
The lender’s new interest only deal is available for house purchase, remortgage and capital raising, and comes with a maximum loan to value (LTV) of 60% and a £995 product fee. This allows for loan sizes ranging from £20,000 to £500,000, which can be secured on a property with a minimum value of £170,000 to a maximum of £1 million. Rates now start at 3.49% for a 2 year fix, up to 3.95% for a 5 year fixed rate, while a 2 year discount loan is also available at a variable rate of 3.3%.
If that wasn’t all, Hodge will consider income from both employed and self-employed customers for affordability assessments, which also includes any state, personal or company pension and investment or rental income.
In addition to this, acceptable repayment methods include the sale of the home or another property owned by the borrower, or the sale of investments, with the option to combine more than one of these to create a repayment strategy. Overpayments of up to 10% are also allowed.
Hodge has certainly been pushing its boundaries in order to offer the best terms possible as far as mortgages for older borrowers are concerned. This latest move has proven beneficial to those working in a non-manual role and retiring much later on in life, bringing more competition to the currently underserved older borrowers market.