Together has announced it will be removing the maximum age limit currently applied to its buy to let mortgages, where affordability can still be accepted without employment income.
This means a retired customer with rental or pension income can now still access borrowing, whereas a previous age limit of 80 was in place.
In addition to this, the lender has also doubled its maximum loan size, which is now available on first charge buy to let mortgages from £200,000 to £400,000, for applications that meet the lending criteria.
These changes are good examples of lending based on common sense rather than stringent criteria, allowing greater flexibility for borrowers whose situations are likely to change – such as a retired individual choosing buy to let to form part of their retirement income or long-term investment.
This will also help ensure customers have greater access to realistic loan amounts reflective of the market. Raising the loan size will also help support investors looking to borrow against higher value properties, with the potential to benefit from higher rental incomes as a result.
In line with this, Nationwide was another lender to make alterations to its upper age limits this week, extending the maximum age for borrowing to 85, which applies to both existing mortgage customers and those remortgaging from other lenders.
This follows the initial announcement from the lender last month that it would be raising its maximum lending age limits along with a selection of other mainstream lenders. Nationwide and Halifax both raised its maximum age limit when applying for a new mortgage to 80, while HSBC, Santander and Virgin currently require borrowers to repay their loan by the age of 75.
The new remortgaging option will be available across the product range, with a new borrowing limit of £150,000 applied. This also comes with a maximum loan to value (LTV) of 60%, with a maximum age at application of 80.