Buy-To-Let Mortgage Lenders Set To Offer Retiree’s Mortgages
Buy-to-let mortgage lenders are reconsidering their age restrictions following the Government’s announcement to give pensioners unlimited access to their retirement savings.
The move has prompted a specialist mortgage lender to offer pensioners under the age of 70 35-year mortgages, while retired people are being targeted with targeted by buy-to-let adverts with senior appeal.
Managing Director of The Mortgage Works (TMW), Henry Jordan, said they have recognised that buy-to-let is a popular source of retirement income, stating “The recent budget announcements could see even more pensioners considering buy-to-let as an option for their retirement savings.”TMW only offer mortgages through brokers and are part of the Nationwide Building Society.
Other firms are advertising new specialist schemes to tempt pensioners to withdraw all their savings and invest in property.
New rules to be introduced in April 2015 were announced in the Budget by the Chancellor, George Osborne, allowing savers to withdraw their entire pensions at age 55, rather than take the money as an annual income over a period of time.
Following the Budget, there was a great deal of speculation that some future pensioners would put pension savings towards property, either by paying off existing mortgages or by investing in property using buy-to-let mortgages.
UK mortgage lenders are being forced to reconsider age limits for borrowers as the new rules will see an ageing population granted full access to lump sums from accumulated pension pots.
Age restrictions previously put in place by many mortgage lenders meant that many would be borrowers between the ages of 65 and 75 would not have qualified for buy-to-let mortgages.
Now, The Mortgage Works, who had previously capped their upper age limit to 75 for first-time landlords and 90 years old for experienced buy-to-let investors, will allow mortgage applications until the age 70 for a maximum term of 35 years.
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