Specialist lender Hodge will now accept 80% loan-to-value (LTV) on interest-only mortgages as part of an affordability push.

This will apply to the lender’s entire Resi and Resi Retire ranges regardless of a borrower’s age.

Hodge business development director Emma Graham said: “It’s essential for us to keep an open dialogue with brokers to help us understand the challenges mortgage customers are facing.Time and again we hear affordability is proving a sticking point for many clients, we hope increasing the LTV on interest-only mortgages will help break some of that stickiness down.”

The lender will accept sale of property up to 75% LTV, with the remaining 5% funded through a second repayment vehicle. There are no minimum income requirements. Hodge will require a minimum interest-only property value of £500,000 at 80% LTV. Hodge lends from age 21 until post-retirement.