The newly released budget included pension reforms which are set to encourage buy-to-let investment amongst the older generation. The Mortgage Works (TMW) have followed this trend and reformed their age restrictions. This will allow those who have reached retirement age to borrow in order to use buy-to-let investments as a potential alternative to a conventional pension. Whilst a maximum applicant age of 70 has been introduced, all age restrictions on the date of term maturity have been removed.
TMW have claimed that the move is in response to research that discovered that more people are using property to supplement their pension.
Managing director of The Mortgage Works, 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 BTL 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 BTL 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.'
