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Buy to let mortgage age limits.

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Many of those in the market for a buy to let property are turned away by mortgage lenders because of ‘buy to let’ mortgage age restrictions.
This is a problem faced by the young and the old alike, as some lenders impose a cap at 75 years of age while others are unwilling to deal with applicants under 21.

If you’ve been turned down for a buy to let mortgage for one of the above reasons, or are concerned that you might be, you’ve come to the right place. We are the market leaders for specialist mortgage information, written by experts for a wide range of customers, including those in early adulthood and later life; and we can connect you with the right mortgage advisor.

Below we cover the following areas for buy to let mortgages:

What is the maximum age for a buy to let mortgage?

Most lenders impose a maximum age restriction of 75 years on buy to let mortgages, but others are more flexible. Some deal with prospective buyers up to 85-years-old, and a select few will even loan to property hunters of any age, under the right circumstances.

There are many factors the lenders will take into account when assessing a borrower aged over 75. For instance, professional and experienced landlords are more likely to secure a loan than a first-time buyer, and a strong credit history always helps.

Can I get a buy to let mortgage if I am retired?

As people are now living and working longer, age is no longer the barrier it once was where the property ladder is concerned, but does this apply to prospective borrowers in their post-retirement years? With some lenders, the answer is yes, subject to standard criteria and some offer ‘buy to let’ mortgages with no upper age limit.

Until recently, lenders were generally reluctant to hand out loans if it meant the borrower would still be in debt after they retired; but since loan repayments are usually covered by the tenant’s rental payments rather than pension income, many are now flexible on this.

Certain banks and building societies may seek to ensure the buy to let mortgage is affordable after you retire, even if there are no tenants in the property.
Others, meanwhile, may require you to have a pre-existing personal mortgage to begin with.

Is ‘buy to let’ a good pension investment?

While some retirees are choosing to invest their pensions into buy-to-let assets, others are reaping the rewards of property investment as a pension alternative. Assuming UK house prices continue to rise, property will almost certainly outperform a state pension in terms of potential returns, if you’re in a position to accumulate a portfolio.

Moreover, measures introduced in the 2014 Budget have enabled landlords to hold ‘buy to let’ in SIPP (self-invested personal pension) making any future capital gains tax-free; and our advisors can establish whether this is an option for you.

Basic state pensions, of course, have benefits too, and whether you should overlook one in favour of buy to let investments depends on a number of factors, including the individual’s circumstances, strategy and appetite for risk.
Get in touch with us or use the live chat below and one of the brokers we work with will help you decide whether this is a viable option.

What type of buy to let mortgage is best for older borrowers?

Those aiming to secure property in later life often find that a traditional mortgage doesn’t quite fit in with their personal circumstances, but there are options available. A specialist loan, such as a lifetime mortgage, may be a better fit for customers of retirement age.

A lifetime mortgage is a popular type of equity release, a long-term loan which the borrower does not have to repay until the end of the plan. Interest is added each year but the mortgage itself will not have to be repaid until the property is sold, often when the owner passes away or has to go into long-term care.

Buy to let customers considering this type of mortgage should be aware of the risks versus benefits involved. For instance, you will be free to spend the money you borrow but releasing equity can affect your tax position and eligibility for welfare benefits.

Or expert advisers can help you determine whether a lifetime buy to let mortgage is the right choice, bring you up to speed on potential alternatives and connect you with an accredited lender that specialises in them.

Is there a minimum age for a buy to let mortgage?

Many mortgage providers in the buy to let sector are reluctant to deal with aspiring borrowers below the age of 21, and some won’t loan to anyone under 25. Legally, however, the minimum age for a buy to let mortgage in the UK is 18.

We work with lenders who are willing to consider applicants who are just 18 years of age, subject to other criteria.

Again, this is where factors such as credit history, borrower status and whether the applicant is set up as a limited company come into play.

For further information, you can speak to one of our experts who handle buy to let mortgages for all ages on a daily basis, call Online Mortgage Advisor today on 0800 304 7880 or make an enquiry here.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances.  – We don’t charge a fee and there’s no obligation or marks on your credit rating.

Updated: 12th July 2018
OnlineMortgageAdvisor 2018 ©

FCA disclaimer

The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage.

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