Specialist lender Hodge has cut the rates on its retirement interest-only (RIO) mortgage range by up to 40bps. 

Its two year fixed rate mortgages, at 75% LTV have both been reduced by this margin. This gives a new rate of 6.85% for its product with a £995 fee, and 7% for its fee-free option. 

Hodge’s five-year fixed rate RIO mortgages have been reduced by 30bps. This gives a new rate of 6.55% (with a £995 fee) or 6.7% without any upfront fee to pay. Both again are available at a maximum 75% LTV. These new rates will be available from Friday (Oct 27th).

Earlier this month Hodge reduced rates on its over 50s mortgages by 30 bps while also increasing LTIs and affordability related criteria enhancements to new purchase and remortgage applications. 

Hodge business development director Emma Graham says: “We know there is an enhanced need at the moment to support consumers facing affordability and cost-of-living challenges within the current climate, and this is another way we can help brokers secure the best outcome for their customers.”

To further support customers taking out these products, Hodge also enhanced its criteria to accept a life insurance policy to support affordability under the death stress test.

Graham adds: “People are living longer and, while affordability in the market continues to bring its challenges, the changes we have worked to make across October are there to provide greater flexibility and support more people to stay in their homes.”