The managing director of Precise Mortgages said: “The changes to the buy-to-let range effectively give us a retirement buy-to-let product.
“This reflects demographic changes and the impact of pension reforms announced in the last Budget and provides pensioners greater options when planning their retirement income.”
It follows a similar move in April that saw buy-to-let lender The Mortgage Works ditch its upper age limit of 90 years for experienced landlords and 75 for first-time landlords to enable clients to borrow past retirement.
Adviser view
Following the Budget in March, Ray Boulger, senior technical director of John Charcol, predicted that allowing people to draw down their full pension savings on retirement should prompt mortgage lenders to review their criteria.
He said: “A few of the smaller lenders will still look at the projected value of a pension fund, using the 25 per cent tax free cash. But the major lenders should stop being too prescriptive if there is enough equity in the property to protect them.”
