The specialist lender, Precise Mortgages, has announced this week that it will be raising its upper age limit on all first or second charge buy to let mortgages to an outstanding 110 years’ old.
This follows the initial move made by the lender to change its criteria on first charge buy to let loans, in order to allow customers to apply for a mortgage at the age of 80 for up to a 30 year term, taking the client to 110 years old. This is thought to be ignited by the fact that many individuals use buy to let to generate income in retirement, yet are sometimes forced to sell a buy to let property once they reach what is considered an arbitrary age. Whether these individuals are reliant for income purposes, or even simply as the best investment they have, this is clearly not a good thing for many.
Thus providing a better solution for older borrowers who can afford the interest but not the capital, many industry figures have argued that it would be far better to pay interest for life as oppose to renting after selling a house to pay off the mortgage. Whereas in this case, with interest only for life, the capital can then be paid off on death or sale of the property.
Meanwhile, Shawbrook Bank has equally been improving its investment range, yet for residential products instead. Now introducing a 30 year interest only residential investment mortgage, Shawbrook’s latest range carries a maximum interest only period of 30 years and comes in the form of 3, 4 and 5 year fixed terms.
These products include a 2.99% rate for simple residential assets, (let to single households or private tenants), 3.49% for small Homes of Multiple Occupancy (HMOs) up to 6 bedrooms, and 2.99% for multi-units of up to 4 flats on one title or with separate leaseholds.