Hodge is relaxing its criteria for 50+ and retirement interest-only (RIO) products to help more borrowers with complex income streams to qualify for its mortgages.

In its affordability assessments, the lender will now accept 100% of variable income, including commission, bonuses and overtime.

It will also consider just one year’s trading accounts or look at the latest year where borrowers have been trading for longer, no matter the LTV.

Affordability for fixed-term contractors will be assessed on 48 weeks’ pay up from 46.

There are no minimum income requirements for experienced contractors and it will now allow for up to three months between contracts, whereas previously this was six weeks.

Retained profits and a day one day rate will also be accepted for 50+ and RIO, subject to assessment.

Hodge business development director Emma Graham says: “We have been steadily developing our range of lending products over a number of years to help give more professionals with less conventional earning patterns enhanced borrowing power. “This is not always possible on the high street.

“We have been assessing cases where diverse and variable income streams are involved for some time and have built a strong reputation as a market leader in specialist lending.”