Increase in older landlords
The number of older people investing in the buy-to-let sector has risen, fresh figures show.
Commercial Trust has seen borrowers aged between 65 and 75 increase their share of buy-to-let mortgage applications by 5.43 per cent in 2018, owed in part to the fact that a number of mortgage lenders have recently increased their maximum age at the end of the mortgage term criteria from 75 to 85 years, while also pushing up their maximum mortgage term.
The data from Commercial Trust reveals a 4 per cent increase in the proportion of buy-to-let purchases and remortgages from over 55s, who now account for 39 per cent of all buy-to-let activity.
For purchase only applications, over 55s were responsible for almost a third - 29.7 per cent - of all business in 2018, which is up 8 per cent year-on-year.
Andrew Turner, chief executive at Commercial Trust, said: “Our look at the age demographics for 2018 buy-to-let mortgage activity, suggests that increasing numbers of older people are recognising the potential of buy-to-let investments.
“Our data indicates that many people reaching retirement are choosing to invest in bricks and mortar and the rental market as a means to fund their retirement years.
“Investing in property has the potential to deliver attractive rental yields and achieve capital growth, despite industry changes.
“I fully expect that the returns fair better than many other forms of investment.”