Hodge is changing the criteria on its 50+ and Retirement Interest Only (RIO) mortgage product, to help more customers with diverse income streams borrow into retirement.
The specialist lender is making a series of changes to support 50+ customers with variable earnings, helping more borrowers access its range of later life mortgages.
These changes include the acceptance of 100% of non-contractual income streams including commission, bonus/overtime and 1 year’s trading accounts OR the latest years where customers have been trading for more than two years regardless of 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 the accepted gap between contracts has been increased from six weeks up to three months. Retained profits and a day one day rate will also be accepted for 50+ and RIO applications moving forward, subject to assessment.
These criteria changes follow on from the successful launch of Hodge’s professional mortgage product which reinforced their expertise and appetite for applicants with complex income streams.
Now, for the first time, the bank has extended this criteria across its 50+ and RIO mortgage ranges to enable its underwriters to say yes to more customers.
Emma Graham, business development director at Hodge, said the changes were being made in response to increased demand from intermediaries alongside Hodge’s ongoing commitment to providing greater flexibility within the wider mortgage market.
Emma explained: “Hodge has been steadily developing its 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.”
“Underpinning this are our highly experienced underwriters who manually underwrite applications, with each case being assessed on its own merits,” Rob Ford, head of mortgage origination, added.
“What we know from all of our work to date is, in the current economic climate, many more people are not only earning their living in a variety of different ways, but borrowing well into retirement too.
“Taking the step to support borrowers with diverse income streams who are aged 50 and above, and broadening the range of borrowing options available to them into later life is the logical next step for Hodge.”
Its latest enhancement to criteria on its 50+ and RIO range of mortgages follows a series of changes Hodge has made to support borrowers with diverse income streams on an ongoing basis.
This includes broadening the range of occupations held by people applying for its Professional Mortgage product at the start of this year and removing the need to meet capital repayment affordability when assessing Interest Only Professional Mortgage applications in late 2023.
For more information on Hodge’s RIO and 50+ product range visit: here