The age of the silver landlord? Number of older BTL mortgage applicants rises
There was a notable increase in the number of older buy-to-let investors in 2018, according to Commercial Trust Limited.
The specialist buy-to-let broker reports a rise in the number of people aged 65-75 applying for buy-to-let mortgages last year, up by almost 6% when compared to 2017.
The broker’s analysis shows that for purchase-only applications, over 55s were responsible for almost 30% of business last year, up by around 8% on 2017 figures.
Meanwhile, across all buy-to-let purchases and remortgages last year, the over 55s accounted for 39% of all business, up from 35% the previous year.
Commercial Trust notes the trend for buy-to-let investment by older people has been recognised by lenders, with many banks increasing their maximum age for buy-to-let mortgage applications or the maximum age permitted at the end of a mortgage term.
For example, Santander recently increased its maximum age at the end of a mortgage term criteria from 75 to 85 years and the maximum term on its buy-to-let range from 25 to 40 years.
Meanwhile, Precise is allowing borrowers to finish a mortgage at 110 years old, while some lenders are now offering buy-to-let mortgages with no maximum age criteria.
“Our data indicates that many people, reaching retirement, are choosing to invest in bricks and mortar and the rental market, as a means to fund their retirement years,” says Andrew Turner, Commercial Trust chief executive.
“Investing in property has the potential to deliver attractive rental yields and achieve capital growth, despite industry changes. I fully expect that the returns fair better than many other forms of investment.”