Hodge Lifetime has lowered the minimum age of its residential interest-only mortgage from 55-plus to 50.
This is in line with its retirement interest-only (RIO) mortgage, meaning borrowers over the age of 50 now have a broader range of options.
Hodge Residential Mortgage products have been designed specifically for borrowers aged 50-plus and allow customers to select the length of the loan term.
Emma Graham, business development director of Hodge, says this decision comes in response to increasing demand from the 50-plus age group.
She adds: “Hodge provides some of the most flexible later-life products on the market and this is just another way we are listening to customer feedback and changing our lending criteria and products to meet demand.”
The renamed 50-plus residential interest-only mortgage offers customers the following:
- Earned income up to age 80 will be considered
- Future pension, investment and rental and benefit income will also be considered at application stage
- Accepts sale of a property as a repayment vehicle
- The maximum age of lending is 95
- Free legal and valuation services on properties up to £1 million
Figures from the Council of Mortgage Lenders show that in 2030, there are expected to be around 10 million more people aged 65.
Graham adds: “They say 50 is the new 40 and this is so true when it comes to lending. We see so many people coming to us wanting to borrow money because they want to buy a new property or boost their retirement income.”
“The income of this age group is very different to those who are in their 20s or 30s so flexibility in later life lending is so important and this is what we are good at,” she concludes.