Hodge has cut interest rates across all its retirement interest-only mortgages, lowered the age limit and introduced fee-free options.
The retirement specialist has introduced a RIO product with an interest rate of 3.1 per cent, which it claims is the lowest on the market.
As well as cutting rates across its range, Hodge has introduced several new features including increased loan-to-value limits of 70 per cent, fee-free options and free valuations. It will also offer penalty-free overpayments and free legals.
Hodge has also lowered the age limit on its RIO and 55+ mortgage products to 50 years of age. It says it’s the first dedicated later life provider to reduce its RIO lower age limit to 50.
These changes are the latest in a series of major shakeups by the lender which include the appointment of new chief executive officer Steve Pateman, and the introduction of Matt Burton as its new managing director of mortgages.
Burton says: “These huge changes to our RIO mortgage offering will give customers a new level of flexibility they may have never seen before.
“It’s been almost a year since Hodge launched one of the very first RIO mortgages, but as our customer’s needs develop, we strongly believe we need to evolve the market and the product we offer to make sure we’re meeting them.
“Over recent months, as part of our Helping Hand initiative, we’ve listened extensively to feedback from advisors, brokers and customers to help us understand what features people want from this new and growing market.
“With market leading rates, free valuations, fee-free options, higher LTV limits and a lower age limit, we’re confident that our new RIO offering sets a new standard on value and flexibility for the dramatically changing face of retirement.”
All Hodge mortgage offerings are advised, and only available through advisers, brokers and broker networks.