Nationwide Offers Long Term Mortgages for Pensioners
2 minute read
Nationwide Building Society’s buy to let mortgage arm, The Mortgage Works is offering long term buy-to-let mortgages to pensioners up to the age of 70 which will only be paid off at the ripe old age of 105 years old. The move comes hot on the heels of pension reforms giving over 55s access to billions of pounds to withdraw from their pension pots to spend as they like. It seems extremely likely that thousands of savers will look to invest their money in property with such a unique opportunity arising, and it seems that more lenders will be following Mortgage Works’ lead in offering longer term deals to older buyers. With reforms leading to greater demand for such deals, it makes sense that lenders would follow suit. Henry Jordan, managing director of The Mortgage Works said, “Using buy-to-let as a long term investment is growing in popularity among people who want to maintain their options and potential sources of income into retirement – and the prospects of the new measures regarding pensions could see even more considering it as an option for their retirement savings.” Analysts have made the early observation that such deals and the resulting housing trends may lead to an increase in property prices, but this is yet to be seen. As a caveat, Nationwide will only lend to people looking to purchase a house to live in, if they can pay off their loan by the age of 75, whilst other lenders have been known to turn down borrowers in their 50s and 60s, with fears of them being ‘too old’. Just Mortgage Brokers will be following any new developments in this news story. To discuss your Buy to Let application with the Just Mortgage Brokers team, get in contact with us today.