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Buy to Let Mortgage Age Limit

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Aug 12, 2022

What is the buy to let mortgage age limit in the UK?

Buy to let property mortgages can be used for anyone who wants to buy property to make long-term investments or generate retirement funds. Buy to Let mortgages are also available to those who have already retired to help increase their income.

This guide is for those planning to retire or have already retired and want to learn more about buy-to-let mortgages. You can know more about age restrictions, maximum age limits and other factors that may affect your ability to obtain a buy-to-let mortgage after you retire.

Enquire today to speak with a mortgage broker for free mortgage advice. We have a few mortgage providers lending a buy-to-let residential mortgage.

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After retirement, why not invest in a mortgage buy-to-let?

Property can be a good investment depending on how secure you are with your mortgage, your interest rate, and the rental income potential. There may also be fees associated with buying a property to let.

You can expect a return on your investment if you have the right professional mortgage advice and a strong market.

Since the new pension rules were implemented, the UK Government has made it easier for those over 65s to choose what they can do with retirement savings. It’s not surprising that people of older age are eager to use their pension funds to invest in the property market, given the recent rise in property prices.

Rent-to-let properties are a popular option for pensioners. However, if your pension fund doesn’t allow you to buy another property, you might need to consider a mortgage to pay the rest.

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How does affordability work for older borrowers?

The situation will not be different for older borrowers than it would be for younger ones. But-to-let mortgages don’t typically have the same repayments as residential. Retirement savings or a salary does not cover them.

Instead, affordability is determined by expected rental income from tenants. This will be in addition to other factors like a loan to value (LTV) and other personal circumstances.

However, lenders may be open to considering personal income if needed. Others will insist that you earn a certain amount to qualify for a BTL loan mortgage (typically around £25,000).

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Are there age restrictions on buy-to-let mortgages?

Age shouldn’t be a problem for buyers of buy-to-let properties, but it should be for residential property buyers. While most mortgage lenders accept applications from anyone older than 21, many borrowers have upper age limits. The general rule is that the older you are, the lower your risk to lenders and the more lenders you have to choose. However, eligibility for all will vary depending on your circumstances.

  • Sixty-five years of age: Most mortgage lenders won’t consider your age a problem. Most lenders will accept your application for a buy-to-let mortgage if you meet all their eligibility requirements and your projected rental income exceeds the minimum threshold.
  • Seventy years of age: Mortgage lenders are willing to arrange mortgages, although some providers have a 75-year limit. Lenders will consider your income less likely to cover the mortgage repayments if you get older.
  • You’re more likely than not to meet lender age restrictions if you are older than 80. Many lenders won’t even consider offering a buy-to-let mortgage to someone 85 years old or older. However, it is possible to find a favourable deal. You must search the whole market to find the best mortgage deal.

A few lenders won’t require you to meet the upper BTL age limit, provided they’re confident you can repay the mortgage in retirement.

No matter your age or circumstance, specialist buy-to-let lenders are available. Our expert advisors know who they are. Talk to one of our whole-of-market brokers, and they will help you find the best mortgage deal.

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What does age have to do with eligibility?

Some lenders might be concerned that you may not be able to make your mortgage payments in retirement, mainly if you aren’t working or your projected pension income falls below a certain level.

Lenders have historically been less open to offering seniors any type of mortgage, mainly if there is outstanding debt such as the repayments on their primary residence.

Factors like health and life expectancy play a part. Many lenders also have limits on the maximum age they will lend to. Some lenders may limit the term length if a borrower is older than a specified age.


Other factors that affect buy-to-let mortgage eligibility in older persons

Lenders will consider more than just income and age when assessing buy-to-let mortgages for pensioners.

Bad Credit

Bad credit is a different issue for every lender. Bad credit may not be an issue when you apply for a buy-to-let mortgage. However, depending on how complex your situation is, repayments are typically on an interest-only basis and will be covered by rental income.

Many flexible adverse credit mortgage lenders base their lending decisions on the severity and length of your credit issues.

Learn more in our buy-to-let mortgage with bad credit guide.

Large loans

Although some lenders limit the amount they will lend, others may approve large mortgages. Lenders will consider your age, health, and overall investment strategy and look for investments that will return a high return over a short period.

Type of property

Like all other non-standard types of property (e.g. Lenders can be more cautious with non-standard property types (e.g. thatched roof, timber frame, etc.) because they consider such constructions to be higher risk and potentially less saleable after the mortgage term ends.

Every lender has its criteria. Some may still be willing to lend depending on the risk associated with the property others will rely on approximate annual income.

Our non-standard construction mortgages page provides more information on what is and is not considered standard construction.

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Talk to a retirement expert in buy-to-let.

It’s a brilliant idea to get professional advice if you are looking for a buy-to-let mortgage in your later years. Although it is possible to secure a favourable retirement deal, obtaining one is much more challenging if you do not approach a mortgage lender.

Buy-to-let mortgage brokers specialising in older customers can make the difference between getting the financing you need and disappointment. A good broker will significantly increase your chances of success. We are dedicated to helping people find the right mortgage advisor.

Our free broker-matching service will evaluate your needs and match you with an expert to provide mortgage advice who can help you reach your goals.

We offer a complimentary, no-obligation chat with a retirement mortgage broker. We aim to make mortgage approval as stress-free as possible.

Speak with an exclusive mortgage expert here today to begin having a mortgage approved. Even if you have a poor credit history, we have specialist lenders to introduce you to.

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