We now accept 80% LTV on Interest Only mortgages
Let’s help borrowers maximise their affordability
We’re excited to include 80% loan-to-value (LTV) on our Interest Only mortgages in our Resi and Resi Retire range. This change will expand borrowers’ affordability at any age.
As a customer-centric and criteria-led lender, we’re keen to flex our products and adapt criteria to meet the evolving needs of today’s mortgage borrowers.
Insight from Emma Graham:
“It’s essential for us to keep an open dialogue with brokers to help us understand the challenges mortgage customers are facing. Time and again we hear affordability is proving a sticking point for many clients, we hope increasing the LTV on Interest Only Mortgages will help break some of that stickiness down.”
Our new 80% LTV on Interest Only gives brokers more flexibility for clients who have strong equity or deposits but want to manage their monthly payments more efficiently. Because we underwrite on a case-by-case basis, we can consider complex and diverse incomes and take a pragmatic and flexible view on affordability, helping more clients, from age 21, up to and into retirement to achieve their goals.
Head of mortgage origination for Hodge, Rob Ford, added:
“We know customer needs are changing. Whether that’s older borrowers hoping to make the most of retirement, or younger borrowers earning income from multiple sources.
“Lifelong lending is slowly becoming the rule rather than the exception and Hodge Bank is doing what it can to make those borrowers’ aspirations a reality.”
Here's what your clients need to know:
- Sale of property accepted up to 75% LTV with the remaining 5% achieved via a second repayment vehicle
- Interest Only assessed on an Interest Only basis for affordability
- Available up to and into retirement
- No minimum income requirements
- 80% LTV on Interest Only up to £2m and 75% LTV up to £3m
- Maximum LTI x 5.5
- Available across the Resi and Resi Retire range
