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The Mortgage Works is removing its age limit at application for experienced buy to let investors seeking a lower LTV mortgage.
The Mortgage Works, the buy to let arm of Nationwide Building Society, currently places a maximum age at application of 70. This applies to all LTVs and all landlord types for buy to let loans. However, there is no age limit at redemption. This will enable The Mortgage Works to reach a more diverse range of clients. Buy to let is a popular strategy for the older generation to generate extra income. By eliminating age restrictions, The Mortgage Works are opening the market up to these clients and increasing the accessibility of the buy to let sector.
This is set to change from 18 April. The Mortgage Works has stated that there will be no maximum age at application or redemption for experienced landlords who are looking to borrow up to 65 per cent LTV for either purchase and remortgage.
The same criteria will also apply to mortgages through a limited company, currently being piloted by the The Mortgage Works.
There is no change in policy for those who are borrowing more than 65 per cent LTV, or for first time landlords.
The Mortgage Works recently increased the maximum LTV for buy to let mortgages from 75 per cent to 80 per cent for first time and experienced landlords. It also revamped its Let to Buy range and the limited company mortgage pilot.
The Mortgage Works’s director of specialist lending, Paul Wootton, said: ‘The group of experienced landlords is both growing and growing older, and market options are more limited for retirees seeking to retain their buy to let properties in order to supplement their pension. By removing the maximum age when applying for a buy to let mortgage, TMW is supporting the increasing market demand in this area.’