Intermediary-only specialist lender Hodge has increased the LTV on its two and five-year fixed rate 50+ repayment mortgages to 85%.

The previous LTV was a maximum of 75%.

Rates on the new 85% product at five years fixed is 3.60%, while the rate on a two-year fix is 3.49%. Fees apply on both products.

Without fees, the rates are 3.75% for five years fixed and 3.60% on a two-year fix.

Hodge business development director Emma Graham says: “With the help of our intermediary partners, we have been researching the type of customer who uses our 50+ repayment mortgage product and have seen that many are using it to re-mortgage current interest only mortgages that are coming to maturity. A number of customers are also taking the opportunity to capital raise at the same time for a variety of reasons including home improvements and inter-generational gifting.

“The FCA predicts that around 40,000 interest-only residential mortgages will mature every year until 2032, with the majority of those interest only borrowers being aged 65 and over. This, coupled with our own research, has helped us make this latest change to our 50+ repayment mortgage products. Again, it’s about flexibility and giving our customers what they need at this stage of their lives to help them achieve their financial goals.”