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Perenna reduces resi and RIO rates; Hodge cuts later life pricing – round-up

Perenna reduces resi and RIO rates; Hodge cuts later life pricing – round-up

Long-term fixed rate lender Perenna has reduced rates across its residential purchase and retirement interest-only (RIO) products.

Perenna’s 40-year fixed rate mortgage at 95% loan to value (LTV) is now priced at 6.61%, following a 0.34% reduction. This has a £1,999 fee and a five-year early repayment charge (ERC) period. 

The lender’s products do not have maximum age limits, allowing borrowers to spread their mortgages over a longer period. 

Perenna’s RIO products have also been reduced in rate and now start at 5.88% for a deal at 60% LTV with a £1,999 fee. 

The lender recently broadened its distribution by joining the Air lending platform and being onboarded onto the Quilter network. 

John Davison, head of product, proposition and distribution at Perenna, said: “With Perenna, age is no more than a number. The Perenna mortgage is attractive to over-50s, having no maximum age and acting as a great bridge between a traditional mortgage and equity release. For customers who may still have plans to sell in the future but can’t access a traditional mortgage due to their age or term restrictions, Perenna offers an innovative solution. 

“We continue to identify ways to offer increased value to our brokers and their clients, and we will continue to do so with the Perenna mortgage.” 


Hodge cuts rates 50+ and RIO product rates 

Hodge has reduced rates across select mortgages for borrowers aged 50 and over and its RIO products by as much as 0.26%. 

Reductions will apply to two- and five-year fixes for new and existing borrowers. 

Emma Graham, business development manager at Hodge, said: “We’ve implemented these changes to give our brokers and their customers greater choice as the market settles and rates continue to fall. 

“We’re hoping these latest rate reductions will help our intermediary partners serve customers requiring specialist mortgage solutions, with competitive rates on our market-leading 50+ and RIO mortgages.” 

Hodge has made a series of changes to its later life lending criteria, including an increase to the age of first death stress for over-50 mortgages and a change to accepted property features on its RIO products.

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