Buy-to-Let Mortgages for Older Borrowers
Older borrowers looking to invest in property are no longer facing the same age related restrictions they once did.
Within the mortgage industry we noticed a surge in the number of buy-to-let purchases by those nearing/ at retirement age when the mortgage market reopened in May 2020, post coronavirus. Year on year there was a 52% increase on the number of buy-to-let properties bought by landlords aged between 60 and 64. This spike is primarily down to the fact that older borrowers now no longer face age related mortgage restrictions. Previously, retired borrowers found it difficult to secure a mortgage to purchase a buy-to-let property.
Lenders Relaxing Restrictions
As the official retirement age has increased lenders have become more relaxed surrounding restrictions put upon older people, previously lenders were often reluctant to offer finance to those approaching/ in retirement (especially if they were still in debt). We now find that a large majority of lenders will lend to those up to the age of 75 and some extend to an even higher age cap! Often older borrowers ask about the required deposit on buy-to-let retirement mortgages. Your required deposit will be the same as any other borrower as long as you meet the buy-to-let mortgage criteria.
There are many contributing factors to why we have seen a spike in this market:
- Due to low returns on savings retirees are looking for other ways to boost their incomes.
- Those nearing retirement age may have taken the option of redundancy or early retirement during the COVID-19 pandemic - giving them access to a lump sum of money.
- Experienced landlords took advantage of the stamp duty holiday - making purchasing costs considerably lower.
Funding Your Retirement
Buy-to-let mortgages aren't only for those looking to make property investments or as a part of a long-term plan to later fund their retirement. Those who are already retired can use a buy-to-let property to increase their current income they have to live on.
At Transparent Mortgage Services our expert and friendly team of mortgage brokers are here to talk you through your options. If you think the buy-to-let market could be for you then please get in contact today - email firstname.lastname@example.org or telephone 01424 444 597.