Hodge has cut rates across its lifetime mortgage and retirement interest-only range by up to 30 basis points.

The lender has cut rates on all its RIO deals at 60 per cent LTV by 20 basis points:

• Two-year fixed rate RIO with £995 fee has dropped from 3.2 to 3 per cent, while the fee-free alternative has come down from 3.45 to 3.25 per cent
• Five-year fixed rate RIO with £995 fee has come down from 3.5 to 3.3 per cent, while the fee-free option has fallen from 3.65 to 3.45 per cent
• Ten-year fixed rate RIO with £995 fee has fallen from 3.95 to 3.75 per cent, while the fee-free alternative has dropped from 4.15 to 3.95 per cent
• Fixed-for-life RIO has come down from 4.55 to 4.35 per cent with no fee

Hodge has also trimmed rates on several lifetime mortgage products by up to 20 basis points:

• Its two-year fixed rate retirement mortgage has been reduced from 4.05 to 3.95 per cent with a £995 fee
• Its five-year fixed rate retirement mortgage has been cut from 4.45 to 4.15 per cent

The lender has made its biggest reductions to its 50+ products which are similar to RIOs but have a fixed term of up to five years:

• Its five-year fixed at 3.4 per cent with a £995 fee has been cut to 3.2 per cent while the fee-free alternative has fallen from 3.55 to 3.35 per cent.

Hodge business development director Emma Graham says: “Having spent considerable time in our homes since lockdown, many of us are re-evaluating our homes and living arrangements. 

“For some older borrowers, this may well include wanting to make home improvements or helping their children fly the nest and buy their own home.

“The rate reductions introduced today, coupled with our ability to consider income up to the age of 80 as well as our Hodge Early Repayment Promise, can most definitely provide families with the capability to provide that much needed family financial support during these difficult times.”

The lender’s Early Repayment Promise allows borrowers to sell their home at a later date and pay back their mortgage in full, with no early repayment charges.

Graham adds: “The stamp duty holiday announced by the chancellor in the summer statement is also a great incentive for all buyers.

“Our hope is that the incentive together with our rate reductions and flexible lending criteria, will enable older borrowers to either help a loved one move into their first home or make the move themselves into a more suitable last home, at a time when the importance of our living conditions have been highlighted more than ever before.”