Specialist lender Hodge will now accept loan-to-value (LTV) of 80 per cent for interest-only mortgages as part of a drive towards affordability.
This will apply across the lender’s entire Resi and Resi Retire range, regardless of the borrower’s age.
Emma Graham, business development director at Hodge, said: “We must maintain an open dialogue with brokers to help us understand the challenges our mortgage customers face.We hear time and time again that affordability is a sticking point for many customers and we hope that improving the loan-to-value ratio on interest-only mortgages will help break some of the stickiness. “
The lender will accept up to 75% LTV of the property for sale, with the remaining 5% financed through a second repayment facility. There is no minimum income requirement. Hodge requires a minimum interest-only property value of £500,000 and an LTV of 80%. Hodge continued to lend money from the age of 21 until his retirement.
