Retirement Advantage reduces rates for older landlords

Retirement Advantage reduces rates for older landlords

Retirement Advantage has made changes to its mortgage range tailored to older landlords.

The retirement income provider has reduced interest rates and increased the loan-to-value (LTV) ratios on its Over 55 buy-to-let options range, which it launched last year.

The buy-to-let deals do not require any interest payments, with the interest figure rolling up and added to the mortgage every month instead.

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The changes have reduced the monthly interest rate from 6.26 per cent to 5.99 per cent, while the loan-to-value for a 73-year-old has increased from 27 per cent to 32 per cent.

On its Over 55 Buy-to-Let Voluntary Select product, Retirement Advantage reduced the monthly interest rate from 6.45 per cent to 6.18 per cent while the loan-to-value for a 73-year-old increased from 27 per cent to 32 per cent.

The same product allows landlords to pay back up to 10 per cent of the initial loan amount each year, with no early repayment charge.

    Alison Watson, head of product and marketing at Retirement Advantage, hopes the changes will make the deals even more attractive to older customers.

She said: “At a time when the buy-to-let market faces challenging conditions, and many older people find it difficult to access mainstream mortgages, these products offer older landlords a new and safe way to generate income.

“That may be to support day-to-day living expenses, fund a major expenditure gift to family, or pay for care.”

Dale Jannels, managing director at All Types of Mortgages, thinks the mortgage market tailored to older customers is growing.

He said: “Lending in to later life is definitely at the forefront of most conversations currently and it is a huge market to service. It is great to see lenders taking the time to cater for such requirements, especially with buy to let.  

“But I think there is still a massive job to do in educating the consumer with all options available to them once aged over 55, and to ensure they seek specialist advice.”