In this paper, we discuss the application of two-parameter alternating group explicit (TAGE) iterative method to an efficient third order variable mesh method for the solution of non-linear differential equations with integral homogeneous functions subject to natural boundary conditions. The proposed method is applicable only when the internal grid points of the solution space are odd in number. The proposed iterative method is also applicable to the integro-differential equations with singular coefficients. Comparative numerical results are given to demonstrate the usefulness of the proposed method.