Hodge launches 95% LTV mortgages for customers with complex income

New 95% loan-to-value (LTV) mortgage options have been added to Hodge’s Resi and Resi Retire propositions, giving customers from age 21 with varied income types greater access to the property market.

These latest enhancements align with Hodge’s wider shift towards “lifelong lending”, bringing together core residential and retirement propositions, where lending is based on a customer’s aspirations rather than their age.

The changes are aimed at a growing segment of customers often overlooked by high-street lenders, including customers with complex income that are older first-time buyers with limited deposits, usually because they are supporting high rent, and second-steppers navigating life changes, such as divorce.

Borrowing up to 5 x loan-to-income (LTI) is considered, along with 100% of all income, customers can be aged from 21, with earned income accepted up to the age of 80. This, combined with mortgage terms of up to 40 years, can help maximise affordability while allowing customers to secure the home they want.

The focus is on  customers with unique circumstances, who will benefit from a case-by-case approach to underwriting.

This removes unnecessary limitations and allows for a more personalised approach to affordability, explains Business Development Director, Emma Graham:

“Today’s borrowers are getting on the property ladder later and expect more from their first mortgage. Many have strong incomes and career potential but lack a large deposit or have income structures that don’t fit the high-street mould.

These changes respond directly to broker feedback and findings from the Financial Conduct Authority’s (FCA) discussion paper – The Future of the Mortgage Market, creating a compelling proposition for these customers and supporting good outcomes. This is about giving them the flexibility and personal approach they need to secure the right home for their future.”

The enhancement follows an increase in broker enquiries from customers in their 30s and 40s seeking family homes in desirable locations, often without family financial support.

By accommodating complex income and applying a common sense approach to underwriting, lower deposit options enable high-quality borrowers to access  greater mortgage opportunities.