Hodge has launched Retirement Interest-Only (RIO) mortgages and cut rates across its existing RIO range.
It has also increased loan-to-value (LTV) limits to 70%, introduce fee-free options and free valuations. It will also offer penalty free overpayments and free legals. The age requirement on its RIO and 55+ mortgage products was reduced from 55 to 50 years of age.
In the RIO range there’s a 2-year fixed at 3.2%, a 2-year discount at 3.1%, a 5-year fix at 3.5%. For the 55 plus mortgage range there’s a 2-year fix at 2.99%, 2-year discount at 2.95% and a 5-year fix at 3.4%.
Matt Burton, managing director of mortgages for Hodge, said: “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.”