Paul Martins, consultant mortgage broker looks at current age restrictions in the buy to let space and explains what you can do if you’re an older landlord who feels like you’ve been locked out of borrowing due to your age.
When it comes to being accepted for a buy to let mortgage age can often be a real sticking point. Most buy to let lenders will ask that you are no older than 70 when the mortgage starts and no older than 75 when it ends.
So what if you’re over 70, have a solid portfolio of rental properties and don’t want to sell up? Or you are in your 60s and want a mortgage with the term to extend past your 75th birthday? It doesn’t seem fair does it? Fortunately there are a few options.
Buy to let lending to individuals
No upper age limit. Currently there is only one lender with no upper age limit but the catch is that you must be under 70 when you apply for the buy to let mortgage. This lender offers terms up to 35 years, so technically speaking you could have the mortgage up to the age of 104!
Up to the age of 85. There are also a few lenders which stretch their age limit to 85 years when the mortgage term ends.
Buy to let lending to limited companies
Lenders are a lot more flexible when it comes to lending to limited companies.
No upper age limit. Our lending brand Keystone Property Finance (Classic Range products only) and one other lender do not impose any maximum age restriction on those applying for a buy to let mortgage using a limited company. So, if age is a factor for you perhaps it’s time to make the switch – of course, do take professional advice from your accountant in this regard. Switching to a limited company could also be more tax efficient.
A workaround. Some lenders will consider applications if at least one director in the limited company is under 70. In recent months we have seen numerous transactions go through where older landlords have set up SPV limited companies and added their son or daughter as a director to get their application accepted.
Up to the age of 85. As with lending to individuals, there are a few lenders which will go to 85 years at the end of the mortgage term.
Take a look at some case studies which demonstrate how we have helped older clients get the property finance the need:
- Landlords in their 70s remortgage HMO on 20 year term
- 73 year old landlord gets 25 year term
- Refinance of recently purchased property by landlords with minor adverse credit
As ever, if you would like to talk through the options that might work for you, do get in touch. Remember, we do not charge a broker fee unless we are successful in obtaining a formal buy to let mortgage offer, (other fee options available), so you have nothing to lose by phone for a chat! My direct line is 01732 471616 or you can call the main line to speak to any of expert brokers on 0345 345 6788.