Hodge Bank introduces 80% LTV on Interest Only Mortgages, helping borrowers maximise their affordability

November 4, 2025

Specialist lender Hodge has today announced it will accept 80% Loan to Value (LTV) on Interest Only Mortgages to help borrowers expand their affordability.

The criteria enhancement is the latest in a raft of changes introduced by the lender in a bid to make its underwriting as flexible as possible. This change applies to Hodge’s entire Resi and Resi Retire range regardless of the borrower’s age.

Speaking about the latest criteria enhancement, Emma Graham, business development director for Hodge, says: “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.”

As a customer-centric, criteria-led lender, Hodge is keen to flex products and adapt criteria to suit the ever-evolving needs of mortgage borrowers.

Head of mortgage origination for Hodge, Rob Ford, added: “We know customer needs are changing. Whether that’s older borrowers hoping to make the most of retirement, or younger borrowers earning income from multiple sources.

“Lifelong lending is slowly becoming the rule rather than the exception and Hodge Bank is doing what it can to make those borrowers’ aspirations a reality.”

Hodge lends from age 21, up to and into retirement with a flexible approach to underwriting to reflect case complexity and diverse income assessment.

Key points:

  • Sale of property accepted up to 75% LTV with the remaining 5% achieved via a second repayment vehicle
  • Interest Only assessed on an Interest Only basis for affordability
  • Available up to and into retirement
  • No minimum income requirements
  • Minimum property value of £500k for IO at 80%
  • 80% LTV on Interest Only up to £2m and 75% LTV up to £3m
  • Maximum LTI x 5.5
  • Available across the Resi and Resi Retire range.

EAN Breaking News

Breaking News from the team at Estate Agent Networking. Have a new story to share with us? Then please get in contact today! When and where we can we will refer to third party websites with a 'live link back' where news was released first.

You May Also Enjoy

Breaking News

Solutions to fix construction skills

The Centre for Social Justice (CSJ) has released a report titled, ‘Skills to Build: Fixing Britain’s construction workforce crisis.’ After speaking to several organizations and having roundtables to garner a wide understanding of the sectors’ perspectives and needs, they have proposed twenty six recommendations that will fix the issues underpinning the skills crisis. Richard Beresford,…
Read More →
Breaking News

Budget Commentary – Mansion Tax, Business Rates & Planning Reform

Andrew Teacher, Co-founder at LauderTeacher, one of the UK’s leading advisors on real estate communications, investor relations and a former spokesman for the BPF, comments on the potential Budget. Mansion tax “Nobody likes paying tax, but the reality is a council tax revaluation is long overdue. Rather than distorting the market, which is what a…
Read More →
Rightmove logo
Breaking News

Budget 2025 market data & home-mover and agent insight

Speculation about property tax changes is fuelling uncertainty across much of the market Rightmove research found that home-movers would favour staggered stamp duty payments, while a poll of estate agents also suggested that staggered payments would be a preferable change to shifting payment to the seller Rightmove data on rumoured property tax changes Mansion Tax…
Read More →
Breaking News

Breaking Property News 24/11/25

Daily bite-sized proptech and property news in partnership with Proptech-X. Symple resolves four core issues in the new Renter’s Rights Act Automating compliance in the new PRS landscape   The Renters’ Rights Act has raised the bar for private landlords in England in terms of property condition, hazard resolution, evidence of compliance and regulatory registration. Symple…
Read More →
Breaking News

What does Rachel Reeves have in store for the UK property market?

With the Autumn Budget now just days away, speculation is mounting that the Chancellor, Rachel Reeves, will use property taxation as a central tool to address the widely reported fiscal shortfall of between £20bn and £40bn. As a result, the housing market has entered a period of caution, with asking prices falling 1.8 percent in…
Read More →
Letting Agent Talk

Why Property Guarantors Need Legal Advice Before Signing

When it comes to property deals, it’s natural to look for additional support, especially when you’re not fully confident about meeting the terms of the agreement. This is where a guarantor comes into play, as they step in to give the property owner some assurance. The idea of helping someone you trust can feel quite…
Read More →