Hodge slashes vacation rental rates by 10 basis points

Hodge cut the rate on its vacation rental mortgage after increased demand for the product.

His two-year vacation rental mortgage (at 75% of loan-to-value ratio) was reduced by 10 basis points, to give a pay rate of 3.7%, while his five-year loan was reduced the same amount at 3.95%. .

The cut follows Hodge’s decision to cut rates on its 50-plus mortgage and retirement interest-only products by 20 to 30 basis points last month.

Recent search showed an increase in inquiries from brokers regarding vacation rental mortgages, with increased interest from property investors in the short-term rental market, fueled by an increase in Covid “stays”.

Emma Graham, Business Development Manager at Hodge, said: “The vacation rental market has had a banner year, with the pandemic and closures limiting vacation choices for many and bringing new people into the market. As a result, it is a popular mortgage product in a very competitive market. »

Hodge says he assesses all applications for these agreements on a case-by-case basis and offers a flexible approach to lending, helping intermediaries get the right mortgage for their clients.

The previous 50+ and RIO discounts from the lender are:

A mortgage offer 50 years and over at a fixed rate over 5 years at 50% LTV at 2.70%, instead of 3.00%.

A 50+ mortgage with a two-year fixed rate of 60% LTV at 2.89%, down from 3.19%.

A 50+ five year fixed rate mortgage at 60% LTV at 2.90%, down from 3.20%.

A two-year fixed rate discount offer for mortgages over 50 years at 60% LTV at 2.79%, down from 3.09%.

And a five-year fixed rate RIO mortgage at 50% LTV at 2.90%, instead of 3.10%.

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