Age restrictions have been a status quo in the buy to let mortgage industry for some time, however, some lenders are reconsidering these policies. The Government made an announcement that would allow pensioner’s to have unlimited access to their retirement savings accounts. This message preceded the movement to change the age restrictions which shows that the announcement made an impact on the mortgage industry.
Prompted by this movement, a specialist mortgage lender has offered pensioners under the age of 70 to apply for 35-year mortgages.
According to MPPT Spotlight, Henry Jordan, managing director of The Mortgage Works (TMW), has recognized that an increasingly popular form of retirement income is now buy-to-let property.
Unfortunately, anytime changes are made in an industry there are schemes that begin to form and target the vulnerable. Particularly when it comes to the retirement community these schemes are manipulative in nature, preying on the fears or possible weaknesses that come with aging. One of these schemes which is being advertised by some firms, is intended to compel pensioners to withdraw all of their savings in order to invest in property.
Chancellor, George Osborne announced that there are new rules which will be introduced in April 2015. These new rules provide an opportunity for pensioners to withdraw their pensions at age 55. This is an alternative to having the money as an annual income.
After the Budget announcement was made, some speculation began regarding whether future pensioners would use their pension savings to pay off existing mortgages, or to invest in property by obtaining buy-to-let mortgages.
The new rules will cause an increase of pensioner’s having full access to large sums from their pension pots. This is forcing UK mortgage lenders to take a closer look at age limits for their borrowers. Modern technology used in detecting health problems in their infancy and modern medicine used to treat these illnesses has greatly increased average life spans.
A large portion of the aging population would have previously not been able to qualify for buy-to-let mortgages. Retirees between the ages of 65 and 75 who would have liked to take advantage of this additional source of income would not have been given the opportunity. Buy-to-let owners can take advantage of all of the resources available at http://onlet.co.uk/ regardless of their age. Using this resource is a great benefit to all buy-to-let landlords, and especially to those who will be purchasing their very first buy-to-let property.
Mortgage applications with The Mortgage Works will now be allowed for those who previously would not have qualified due to age restrictions. The new age guidelines will now give opportunity for investment through mortgage applications until the age of 70. The maximum term of 35 years will now be standard practice. As people continue to live longer, there will be an increased need to evaluate more policies and procedures which include an age limit. Changing according to the needs of the time will continue to propel us toward progress in each generation.
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