Buy to Let Lending Into Retirements
At Rockhopper Later Life Finance we help landlords aged 55 and over arrange buy to let mortgages that continue beyond the age at which they expect to retire. Many high street lenders set a maximum age for buy to let borrowing, which can make it harder to remortgage or extend a term later in life. Specialist lenders take a more flexible view, and the assessment usually rests mainly on the rental income the property produces.
We work with customers who are:
- Own a buy to let and want a term that runs past their retirement age
- Have been told their age limits the buy to let term available
- Are remortgaging a rental property and need the term extended
- Rely on rental income as part of their retirement plans
- Hold one property or a small portfolio they want to keep into retirement
- Want to understand how lenders assess affordability on a buy to let in later life
- Are weighing up keeping a rental property against selling it
Being told that your age limits a buy to let mortgage can be frustrating, particularly when the rent comfortably covers the payments. Lenders differ widely in how they treat older landlords, and a specialist understands which lenders assess these cases on the strength of the rental income rather than focusing on age.
Buy to let lending is assessed differently from a residential mortgage. The main test is usually whether the expected rental income covers the mortgage payments by a margin set by the lender, often with some allowance for costs and tax. Your personal income matters less than it would on a residential mortgage, though some lenders still ask for a minimum level of income.
Where the term extends into retirement, lenders consider whether the arrangement remains sustainable as you get older. Some set a maximum age by which the mortgage must be repaid, while others lend with no upper age limit and focus on the property and the rental income. The maximum age varies considerably between lenders.
Most buy to let mortgages are not regulated by the Financial Conduct Authority, which means the consumer protections that apply to residential mortgages may not apply. Where you let to a close family member, the mortgage may instead be treated as a regulated contract. Your adviser will explain which category your case falls into and what that means.
Where keeping the property is not the right route, alternatives such as restructuring a portfolio, repaying the mortgage, or selling may be worth considering. Tax is an important factor in buy to let decisions, and we may suggest you take independent tax advice alongside our mortgage advice.
The Process
Your first conversation is an informal discussion about the property, the rental income, and your plans for it in retirement. This helps us understand which lenders are likely to consider your case.
We complete a full fact-find covering the property, the rent, and your circumstances, and we assess how different lenders are likely to view a term that extends into retirement. We then provide a written recommendation.
Every case is different. A single rental property is assessed differently from a small portfolio, and our advice reflects your own circumstances and plans.
Speak to a Buy to Let Specialist
Call 0203 621 5696
Lines open 9am to 5pm Monday to Friday. Alternatively, complete the enquiry form and we will call you back at a time that suits you.