Hodge has announced 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 percentage points on Friday 27 October.
Alongside increased 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 percentage points this month.
Now its suite of RIO products is set to follow suit, with the new rates as of 9am on Friday 27 October as follows:
| Product | Max LTV |
Product fee |
Current rate |
New rate |
| RIO Mortgage 2 year fixed | 75% | £995 | 7.25% | 6.85% |
| RIO Mortgage 2 year fixed (fee free) | 75% | £0 | 7.40% | 7.00% |
| RIO Mortgage 5 year fixed | 75% | £995 | 6.85% | 6.55% |
| RIO Mortgage 5 year fixed (fee free) | 75% | £0 | 7.00% | 6.70% |
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.”
As a lifetime mortgage with no end of term imposed (until long term care, death or transfer to a remaining party takes place), RIO mortgages make for an attractive option for many looking to borrow into later life.
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.”
