The product starts at 3.49% for a 2-year fix, 3.30% for a 2-year discount and 3.95% for a 5-year fix and can be taken out up to the age of 85, or 95 if the loan is taken out by more than one person.
Hodge Lifetime has launched into residential mortgage lending with an interest-only product for borrowers aged over 55.
The product starts at 3.49% for a 2-year fix, 3.30% for a 2-year discount and 3.95% for a 5-year fix and can be taken out up to the age of 85, or 95 if the loan is taken out by more than one person.
It will be distributed by Legal & General's key partners but Hodge has targeted making its interest-only offering whole of market in the summer.
Steve Cox, business development director at Hodge Lifetime, said: “A broader choice of products can only be a good thing to make sure older borrowers get the right solution.
“Equity release will remain a solution but those who pass affordability checks now have a broader range of options. We expect borrowers to migrate through a range of products.”
Despite launching into mainstream lending for the first time Cox said Hodge wants to retain its existing relationships within the equity release market.
Therefore "key partners" in Key Retirement, Age Partnership and the Equity Release Club will be able to access the products "very shortly", he added.
Cox said: “Historically there has been a gap in distribution between equity release and mainstream and we expect this to blur over time.
“We feel that the fixes on offer are sufficient for customer needs. As we get a bit of traction we will look at further innovation in this space.”
Last week the Financial Conduct Authority announced that later life firms will be able to ‘switch off’ affordability assessments when offering hybrid lifetime mortgages.
In response Cox said Hodge’s current product range is being looked at to see whether it could utilise such an exemption.
