zugzwang Posted April 8, 2014 Share Posted April 8, 2014 (edited) Fresh hope for the (nearly) dead. Dozens of buy-to-let lenders could reconsider age restrictions they impose on investors in the wake of government plans to give pensioners unlimited access to retirement savings. Landlords locked out of borrowing into their pension years are already seeing a slight easing in restrictions, with a major lender introducing an age limit of 70 on buy-to-let investors applying for a mortgage, but letting them take up to a 35-year term. Currently, many lenders have age restrictions on when buy-to-let mortgages mature. This can typically be 75 for first-time landlords and older for experienced ones. But many existing landlords report difficulties in getting access to the full range of mortgages on offer if they want to borrow beyond their seventies. When investors reach the maximum age, terms set by many lenders require the landlord to then sell their property to repay the mortgage - or find the money to do so elsewhere. The restrictions mean many struggle to secure buy-to-let mortgages to become investors in later life, or even to remortgage existing loans, even if they have large deposits. Now The Mortgage Works – the buy-to-let lending arm of Nationwide - is introducing a maximum age at which borrowers can apply for a mortgage of 70, but it can last up to 35 years. Previously, the lender allowed first-time landlords' mortgages to run until a maximum age of 75 or experienced investors, assessed individually, to run to up to 90. Now borrowers must apply by 70 but could theoretically have a mortgage term that runs beyond their 100th birthday. This will allow more people to borrow into retirement. If other providers follow suit, it could mean more older buy-to-let investors may emerge in future years, especially as pension freedom changes that will allow savers access to their full retirement pot could see a flow of money moving into property investment deposits. Henry Jordan, managing director of The Mortgage Works, said: 'We are aware that a significant proportion of landlords intend to use their buy-to-let property as a form of retirement provision. '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.' The move by The Mortgage Works comes after Chancellor George Osborne unveiled a major overhaul of the pensions system in the Budget which will allow more of a pension fund to be taken as cash from the age of 55, without incurring harsh tax penalties, from next year. Mortgage brokers believe this may mean more retirees will take a cash lump sum to invest in property as a way to accrue an income. David Hollingworth at London and Country Mortgages, says: 'The ability to buy an investment property to provide an income in retirement is curtailed in many cases by the fact that lenders limit the maximum age to which they will lend, in the same way as they do for owner occupiers. 'As a result many lenders will only lend to a typical maximum age of 75 at the end of the mortgage term, so the flexibility to offer a mortgage that will go beyond that will be welcomed by those seeking to generate a rental income. Read more: http://www.thisismon...l#ixzz2yIZlLTVI Edited April 8, 2014 by zugzwang Quote Link to comment Share on other sites More sharing options...
Sancho Panza Posted April 8, 2014 Share Posted April 8, 2014 What about if you're 35 and want a 70 year mortgage? mmmmm.... Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted April 8, 2014 Share Posted April 8, 2014 Yep, I posted that snippet last week. Quote Link to comment Share on other sites More sharing options...
rantnrave Posted April 8, 2014 Share Posted April 8, 2014 (edited) Perhaps if the mortgage isn't paid off before the person pops their clogs, it could be passed down to the next generation... Edited April 8, 2014 by rantnrave Quote Link to comment Share on other sites More sharing options...
Stop The Ride Posted April 8, 2014 Share Posted April 8, 2014 Perhaps if the mortgage is paid off before the person pops their clogs, it could be passed down to the next generation... Hereditary debt bondage has a long and noble tradition. Linky Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted April 8, 2014 Share Posted April 8, 2014 course, they could offer the exact same mortgage to the tenants... Quote Link to comment Share on other sites More sharing options...
Gigantic Purple Slug Posted April 8, 2014 Share Posted April 8, 2014 Don't see why there is a problem lending money to people at any age so long as there are assets to secure against the lending. Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted April 8, 2014 Share Posted April 8, 2014 This will be a classic post to laugh back at in a few years time. Quote Link to comment Share on other sites More sharing options...
MartinE Posted April 8, 2014 Share Posted April 8, 2014 I see dead people....defaulting, Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted April 8, 2014 Share Posted April 8, 2014 I see dead people....defaulting, We need Yellerkat to post on this thread with the "I see dead BTL" avatar. Quote Link to comment Share on other sites More sharing options...
yellerkat Posted April 8, 2014 Share Posted April 8, 2014 We need Yellerkat to post on this thread with the "I see dead BTL" avatar. NO. Quote Link to comment Share on other sites More sharing options...
R K Posted April 8, 2014 Share Posted April 8, 2014 90 yr old landlords. Lovely. Don't worry Messrs Carney & Haldane have 'tools' to deal with that. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted April 8, 2014 Share Posted April 8, 2014 NO. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted April 8, 2014 Share Posted April 8, 2014 Now The Mortgage Works – the buy-to-let lending arm of Nationwide - is introducing a maximum age at which borrowers can apply for a mortgage of 70, but it can last up to 35 years. This will be the next miselling scandal when the heirs refuse to accept the charge on "their" property as grandad was tricked into signing away their inheritance and the rest of us will be forced to pick-up the tab. Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted April 8, 2014 Share Posted April 8, 2014 course, they could offer the exact same mortgage to the tenants... The Nationwide Building ******ing Society don't like those odds though. *****. Quote Link to comment Share on other sites More sharing options...
R K Posted April 8, 2014 Share Posted April 8, 2014 The Nationwide Building ******ing Society don't like those odds though. *****. Unfathomable. Perhaps there's some clause in the mortgage contract requiring the demented BTLer to use Nationwide as estate execs for which they can extract a humungous fee. Otherwise it's quite dispicable practice which the FCA should (but won't) put a stop to. Quote Link to comment Share on other sites More sharing options...
Rigsby Posted April 8, 2014 Share Posted April 8, 2014 If, and that's a very big if, I should last until 70, the last thing I would need is worrying about stuff like this...me prostate would explode...good luck to 'em Quote Link to comment Share on other sites More sharing options...
winkie Posted April 8, 2014 Share Posted April 8, 2014 Don't see why there is a problem lending money to people at any age so long as there are assets to secure against the lending. The big question is the loan to value......maybe the Nationwide need the assets....high interest and high security. Unregulated so how can they lose?.....the debtor loses their money/equity/savings first, I am sure they will see to it they will not begin to lose any of theirs. Quote Link to comment Share on other sites More sharing options...
iamnumerate Posted April 9, 2014 Share Posted April 9, 2014 The big question is the loan to value......maybe the Nationwide need the assets....high interest and high security. Unregulated so how can they lose?.....the debtor loses their money/equity/savings first, I am sure they will see to it they will not begin to lose any of theirs. Easy if the debtor puts in y% of the equity and has no other equity (or gives it away before dying). House prices fall by y+x %and the debtor dies. Then they lose £x plus the amount not paid on the loan whilst the legal process and selling the house goes through. It is a vampire loan but they don't always work as banks found out in the US so it is a bit risky. Quote Link to comment Share on other sites More sharing options...
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