With the UK population getting older and older, more finance firms are now opening up their buy-to-let mortgages to older borrowers.
The ageing population of the UK is only expected to grow, with 11.4m people currently over the age of 65. This is forecast to increase by 12% by 2020 and nearly double to 19m by 2050. In fact, the average life expectancy in Britain is now around 81-years-old.
This growth has caused a rise in the number of retired landlords relying on rental income and their property portfolios to boost their pension pots.
Purchasing a buy-to-let property is now pitched to pensioners as one of the best ways to save for retirement and as a secure investment option. A steady increase in house prices over the past few years has also fuelled this trend, and more pensioners are now coming forward to invest in the sector.
Specialist buy-to-let lenders, such as Together finance, have removed their age limits on buy-to-let and consumer mortgage products.
Recently, Together removed its previous 80-year age limit on first charge buy-to-let mortgages. Affordability can be satisfied without income from employment, which essentially means that a retired customer with rental income or rental income plus a pension will still have access to borrowing.
For its consumer buy-to-let products, the age limit has also been removed for borrowers whose rental income covers 120% of the total secure lending repayments.
With specialist lenders seeing demand for buy-to-let mortgages from customers in their 50s and 60s growing, age limits meant that some investors were missing out on opportunities to plan ahead for their retirements.
Having even one or two buy-to-let properties can help to fund your retirement, so it is worth looking to a specialist mortgage provider that offers lending to older borrowers.
As with choosing a trustworthy mortgage lender, you should also protect your buy-to-let investment with a market-leading insurance provider, such as Just Landlords.
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