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We’ve enhanced our criteria for later life products

19th October 2023

We've introduced significant criteria enhancements to our later life mortgage products, supporting your customers when it comes to affordability.


  • Increased income multiples across our 50+ and RIO from 4.49 up to 5 times income on an interest only basis, and from 4.49 up to 5.5 times on a repayment basis
  • Reduced the stress rate for pound for pound remortgages
  • Reduced living costs to reflect the reduction in the energy cap from 1st October
  • Started to accept a life insurance policy to support affordability under the death stress test

Curious to find out more about our criteria?

Louise Swainston, head of mortgage risk at Hodge:

“Affordability continues to remain a challenge for mortgage customers across the market as interest rates remain high and the cost of living continues to rise.

“To help support our intermediary partners and their customers meet affordability hurdles, we have factored the news of the decrease in the OFGEM energy price cap into our affordability assessment, as well as reducing our stress rates for like-for-like remortgage borrowing. This will support customers who fail the death stress allowing us to assess affordability based on the policy covering or partly covering the loan in addition to their personal income.”

Emma Graham, business development director at Hodge:

"Our enhanced criteria changes are part Hodge’s pledge to work with its intermediary partners to create products that are fit for their clients, and that complement the wide range of incomes that it already accepts.

 "We have developed this package of supporting criteria enhancements to help customers, particularly those who are looking to remortgage, with any affordability issues in mind. In particular, we believe the relaxation of the stress testing will be beneficial to many customers at a time when they need it the most.

 "Our later life products allow for debt consolidation and assess interest only mortgages on an interest only basis. So, as a lender we believe we are doing all we can to help our intermediaries navigate the affordability challenge they are facing at the moment.”

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