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Leek United Building Society Buy to Let with no upper age limit Buy to Let News, Landlord News, Latest Articles

18 Months ago I wrote one of our most popular articles titled Ageism in BuyToLet mortgages? Myths dispelled

This article highlighted the ability to apply for Buy to Let mortgages beyond age 70 and which lenders you could consider. To this day I still regularly get calls from people who have just read the article and need help remortgaging into their retirement.

Now the Leek United Building Society is the latest lender offering a Buy to Let mortgage with no upper age limit (see product details below)

The risks to a lender in terms of Buy to Let funding is very different to them providing personal mortgages. Usually a person’s income falls when they decide to retire so it makes a lot of sense for lenders to insist on a personal mortgage being paid well before retirement. A Buy to Let mortgage is different though.  Rental income is not affected by the retirement of a borrower. These mortgages are based on far more simple commercial rules, i.e. the rental income pays the mortgage interest and the costs of property ownership and it’s far easier for a lender to take possession of a property and sell it to recover the loan in the event of mortgage payments not being made. Why therefore should ageism be an issue for Buy to Let?

Leek United Product details:

  • 3.99% 2 year discounted variable (SVR currently 5.19% minus 1.2%)
  • Maximum 75% LTV
  • Fees £199 payable up front
  • 3% early repayment charge for the first 2 years
  • No Flats, Maisonettes, HMOs, Student lets or DSS lets
  • Stress tested at 125% interest cover on the pay rate – allows you to borrow up to  240.60 times the monthly rental income (subject to 75% LTV maximum)
  • Min Loan size £75,000, Maximum loan size £500,000
  • Minimum applicant income required £20,000 but this can be pension income
  • Maximum portfolio 20 properties
  • Only available in England and Wales

If you need any help there are two ways to reach me; telephone Neil Patterson on 01603 489118 or email npatterson@property118.com

Or if you would like to add your own requirements and search for the most popular available Buy to Let products please click here ageism

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