Growing recognition of buy to let property pensions as a safe investment has led to one of the largest lenders raising the maximum borrowing age for property investors.
The Mortgage Works, the buy to let arm of the Nationwide Building Society, is to accept applications from borrowers aged up to 70 years old.
The lender has accepted that buy to let is a key retirement saving investment following a report showing that 75% of landlords intend to bolster their retirement finances with rental income.
The Mortgage Works also explained that forcing older landlords to sell can have an adverse financial affect because of capital gains tax issues.
Managing director Henry Jordan said: “We are aware that a significant proportion of landlords intend to use their buy to let property as a form of retirement provision.
“We believe these changes provide an innovative and practical solution that allows us to responsibly support those aspirations.
“Using buy-to-let as a long term investment is growing in popularity amongst people who want to maintain their options and potential sources of income into retirement – and the recent budget announcements could see even more considering buy-to-let as an option for their retirement savings.
“Our removal of upper age limits at maturity will ensure our customers are offered greater choice and flexibility around the point at which they might sell their property; providing increased peace of mind for their tenants, as well as supporting stability in the wider market.”
Mansfield Building Society is offering a new two-year buy-to-let discount at 3.29% to 70% loan-to-value.
Borrowers can take a maximum £300,000. The loan comes with an application fee of £199 and completion fee of £999.
Two new five-year fixed rate buy-to-let deals are available to landlords from brokers with Saffron for Intermediaries.
With a rate of 4.87% up to 80% loan to value on standard buy to let homes, the mortgages come with an arrangement fee of £995 for loans up to £500,000, which rises to £1,995 for loans up to £1 million.
Refurbishment loans are priced at 5.07%, again up to 80% loan to value with the same fees as the standard buy to let loan.
Santander is also loosening lending criteria by offering buy to let mortgages to self-employed landlords – alongside The Mortgage Works and Virgin. Applications are expected to be accepted from April 7 and full details of the loan are awaited.