Mortgages  

‘Pensioners should beware becoming landlords’

‘Pensioners should beware becoming landlords’

Pension freedoms may have led to a lot of talk about buy-to-let, but Steve Griffiths, head of sales and distribution at Kensington, is warning that people should not rush to set up as landlords.

He said: “With so many people unhappy with pension saving there is a need for alternative approaches. But buy-to-let will not be right for everyone, and anyone planning to do so needs to get advice from a broker as well as advice on other issues including tax.”

Mr Griffiths pointed to figures that show the BTL market is already a strong and competitive market, with more than 1.63 million mortgages worth approximately £188bn representing around 14 per cent of the total mortgage market.

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“There is plenty of advice available, as well as lenders willing to lend,” he added.

His comments came as research among Kensington’s clients aged 40 and over revealed a distrust of pension products to fund retirement. Some 15 per cent claimed they regretted making a decision to save into a pension.

Adviser view

Dean Mirfin, group director for Lancashire-based Key Retirement Solutions, said: “Our experience is that showing people what their tax liabilities will be has really tested whether people want or need to take out all their money.

“Our biggest concern is that too many people try to make the decision on their own. What will be interesting to see is how many people do root out Pension Wise.”