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.

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