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Retirement Advantage has reduced rates and increased LTV ratios across its buy to let offerings for older landlords.
The range, introduced just last year, allows landlords aged 55 and over to release cash tax free from their buy to let properties. They are able to do this without having to sell their investment properties.
The monthly interest rate on the over-55s products from Retirement Advantage have now been reduced from 6.26 per cent to 5.99 per cent. At the same time, the LTV for a 73-year old increases from 27 to 32 per cent. For the over 55 buy to let voluntary select product the monthly interest rate has been cut from 6.45 per cent to 6.18 per cent. The LTV has been raised by the same margin.
Enhancements to the second home options range has also been announced. These are lifetime mortgages secured against a second property. The interest rate on its ‘lifestyle’ product has been cut from 6.26 per cent to 5.99 per cent. Meanwhile its voluntary select product has been cut from 6.45 per cent to 6.18 per cent. LTVs have been increased from 27 per cent to 32 per cent for a 73 year-old, which enables them to borrow a greater percentage of the property’s value.
Retirement Advantage’s head of product marketing Alice Watson spoke out about the significant demand these products have received since their launch: ‘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.’
On the lifestyle mortgage range there is also no interest to pay on the money released. This is rolled up and the total debt repaid only when the property is sold. On the voluntary select mortgage landlords are able to pay back up to 10 per cent of the initial loan amount each year without paying an early redemption charge.