Simple Landlords Insurance

Get a quote Retrieve quote call us 0808 172 5600

New mortgage range for landlords over 55 proves popular

Wednesday 29 August 2018

Interest rates are being reduced and loan to values increased across a range of buy-to-let mortgage products aimed at older landlords.

Retirement Advantage, which introduced the range last year for buy to let landlords aged over 55, says it is not enhancing the range because they are popular with advisors and customers. 

The range allows landlords over 55 to release cash from their property tax free, thus leaving their entire portfolio intact.

The monthly interest rate (MER*) on the over 55 buy-to-let lifestyle product is reduced from 6.26 per cent to 5.99 per cent, while the loan to value (LTV) for a 73 year old increases from 27 per cent to 32 per cent.

On the Over 55 Buy-to-Let Voluntary Select product, the MER is reduced from 6.45 per cent to 6.18 per cent while the LTV for a 73 year old also increases from 27 per cent to 32 per cent.

Alice Watson, head of product and marketing at Retirement Advantage, said: “The reaction to these products since we launched them last year has been overwhelming.  

"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.

“But our ethos is built on a desire to innovate and we are always looking for ways to improve our products even further. 

 “We have listened to advisers and to customers and we’re confident these enhancements will make this unique product range an even more attractive proposition,’ she added.

The equity landlords release from their portfolio properties is theirs to do what they like with, and they choose whether they wish to make any repayments. 

With the over 55 buy to let lifestyle product, there are no interest payments, instead, the interest rolls up and is added onto the mortgage every month.

The over 55 buy-to-let voluntary select mortgage allows landlords to pay back up to 10 per cent of the initial loan amount each year, without being charged an early repayment charge. 

This means they can choose how much interest to pay, and to pay back some capital each year too.

At the same time, Retirement Advantage also announced enhancements to its second home options range. Unlike most lifetime mortgages, these are secured solely against home owners’ second homes.

The MER on the second home lifestyle product is reduced from 6.26 per cent to 5.99 per cent, while the LTV for a 73 year old increases from 27 per cent to 32 per cent. 

On the second home voluntary select product, the MER is reduced from 6.45 per cent to 6.18 per cent while the LTV for a 73 year old also increases from 27 per cent to 32 per cent.

*MER (Monthly equivalent rate) – the monthly interest rate which is applied to your lifetime mortgage

  • The emerging landlord

    It is a time of tremendous change for landlords in the UK.

    Visit microsite
  • Cover from as little as £112.68*

    Get a quote

Call 0808 172 5600

open weekdays 9am-8pm, Saturdays 9am-5pm, and Sundays 10am-4pm.

Get a quote

We want to add value to landlords with interesting news and views! Our Hub includes information and opinions on the housing market from a variety of expert sources – please just be aware it doesn’t always reflect Simple’s opinion, or the products and services we provide.

Related news articles

Support landlords and bring empty homes back into use

Thursday 14 March 2019

The Government is being urged to bring forward tax measures to address the rise of empty homes, after new figures revealed the number in England increased by around 30,000 from almost 606,000 to over 634,000 in the 12 months to October 2018.