It is no secret that one of the major benefits of property as an asset class is the opportunity to use mortgages to increase your buying power. It is generally understood unfortunately that the older we get the more difficult it becomes to secure finance. Now however, it seems as though lenders are realising the opportunity that this customer base offers and are now reviewing their maximum lending terms and raising the maximum age limit at either: time of application, or age at end of mortgage term.
Santander for example has increased the maximum age for its buy to let landlords from 75 to 85 years, which will give the opportunity for taking new buy to lets, or re-mortgaging existing ones, well passed the average retirement age. A positive shift for many.
And it is not just Santander – according to Moneyfacts, out of 2057 buy to let mortgage deals currently available, 65% of them have maximum age at end of term of 85 years or older. And 20% do not specify a maximum age at end of term.
We all invest for a better tomorrow and in many of our clients’ cases, for retirement. Knowing that buy to let investors will have the flexibility to take good debt into retirement (where it makes sense to do so financially) is a very positive thing.