"Over the past three years, we’ve seen an increase in cases where debt consolidation is a loan purpose, particularly in the later life space."
- Emma Graham, business development director at Hodge
Hodge is increasing the maximum loan size on its professional, 50+ and retirement interest-only (RIO) mortgage products, as well as offering a higher LTV on these products for customers wanting to consolidate debt.
For debt consolidation purposes on professional, 50+ and RIO products, the maximum LTV has increased from 60% to 70% on interest-only and from 60% to 85% LTV for repayment mortgages.
For larger loans, the maximum loan size has increased from £1.5m to £2m up to 75% LTV, remains at £1m up to 85% LTV, and has increased from £750,000 to £850,000 up to 90% LTV.
Emma Graham, business development director at Hodge, said: “As a specialist lender supporting customers with complex incomes, in both later life and professional markets, we understand more than most the challenges facing brokers and consumers when the income is multifaceted.
“We see that these challenges are facing all areas of the market, including high population and high net worth areas such as London and other major UK cities, where larger loan amounts and greater financial flexibility are an ever-increasing requirement for borrowers.
“Over the past three years, we’ve seen an increase in cases where debt consolidation is a loan purpose, particularly in the later life space. The cost of living crisis and rising interest rates make unsecured debt less palatable, leading customers to consolidate onto a lower rate.
“We’re working closely with partner brokers operating within these areas, actioning feedback in order to improve affordability and the borrowing options available to customers looking to consolidate debt or borrow more.
“These latest enhancements to our later life and professional product portfolio are also further demonstration of Hodge’s commitment to continually improving the markets we operate in as a means to supporting our brokers and their customers in the moments that matter.”
