Is there a buy to let mortgage age limit?

Forget stocks and bonds – build a real estate empire from anywhere in the world!

As a savvy investor, you know that diversification is key. And what better diversifier than a steady stream of income from carefully chosen rental properties? Enter the world of Buy-to-Let (BTL) mortgages, your gateway to passive income and long-term wealth creation.

Whether you’re a seasoned property guru or a curious newcomer, we’re here to guide you every step of the way. Let’s ditch the dry financial jargon and talk about what truly matters: unlocking your property investment potential, no matter where you live.

But before we dive into the nitty-gritty, let’s dispel some myths. You don’t need to be a millionaire or chained to a desk 24/7. BTL mortgages can be surprisingly accessible, opening the door to financial freedom for investors of all ages and backgrounds.

So, are you ready to:

• Transform your savings into tangible assets.
• Generate dependable income that grows with inflation.
• Enjoy the flexibility and security of long-term property ownership?

If you answered “yes” to any of these, then you’re in the right place. Keep reading to understand the key factors lenders consider when approving BTL mortgages and how we can tailor a financing solution that perfectly aligns with your goals.

Remember, with the right guidance and a savvy BTL mortgage, your dream property portfolio is just a few steps away.

Is there still a BTL mortgage age limit?

In recent years, mortgage lenders generally seem to have adopted a far more relaxed attitude towards those upper age limits.

The effect has been to encourage property investors to remain in the buy-to-let mortgage market until they are considerably older, well into their retirement, and in some cases, up to 85 or even 95 years of age when the mortgage reaches full term.

As the tenancy deposits protection company My Deposits put it, age is no longer a limit for buy-to-let borrowing.

The company points out that there are currently more than 2,000 buy-to-let mortgage deals on offer, with two-thirds of them prepared to entertain loans that do not reach full term until the individual reaches up to 85 years of age. More than that, 9% of buy-to-let mortgage deals have a maximum age limit of 90, while 5% have no upper limit at all.

An article by the Consumers’ Association’s Which? magazine confirmed the trend by identifying a range of mortgage products specifically designed for those who have already entered their retirement. The products might be used to help augment incomes during those retirement years or as an aid in releasing equityThe difference between the value of the property and the amo... built up in the property owned by older people.

The article gave the example of an individual retiring at the age of 65 who could now consider taking on a 20-year buy-to-let mortgage that would run until they reached the age of 85. This option was simply unavailable only a few years ago when the age limits were around 70 to 75.

Why are age limits used anyway?

Any mortgage lender is interested in one thing – and that is knowing that their money is safe and that the borrower continues to make the necessary repayments as they fall due until the end of the mortgage term.

For that reason, lenders are accustomed to doing everything in their power to assess the affordability of a mortgage, the creditworthiness of the applicant, and the security of their employment and income.

Those considerations are every bit as critical when assessing applications for buy-to-let mortgages. Indeed, because few people under the age of 21 are likely to have built up a credit history of any standing or reliability, many buy-to-let mortgage lenders typically require applicants to be at least 21 years old. (This isn’t to say that you cannot get a BTL mortgage if you are under 21 – there are still some mortgage providers who will lend to you. A BTL mortgage broker can help you identify those lenders who lend to younger and older borrowers).

The principle on which a buy-to-let mortgage is founded is that the let property pays for itself. The loan is based on the fact that rental income will more than cover the monthly mortgage repayments – and the maximum amount of any loan is based on multiples of that predicted rental income.

But the lender must also build in a security net or back up against the possibility of the property remaining empty, with no tenants paying rent, for an extended length of time. In that event, of course, the borrower is going to be hard-pressed to make the monthly mortgage repayments.

If the borrower has already reached retirement age and relied on a pension as well as income from let property, went the logic, then the risk of a default on mortgage repayments was greater.

As we have seen – and as borne out by the current lending policies of many mortgage providers – age is no longer a barrier or obstacle to obtaining a buy to let mortgage.

FAQs – Understanding Buy-to-Let Mortgage Age Limits

Can I get a mortgage if I’m retired?

Yes, you can. Retiring doesn’t stop you from getting a mortgage for a buy-to-let property. You might earn less after retiring, so paying the mortgage every month could be tougher. A mortgage broker can guide you through your options.

How much deposit do I need for a buy-to-let mortgage if I’m retired?

The deposit for a buy-to-let mortgage doesn’t really change because you’re retired. Some mortgage providers might limit how much they lend to older people. It’s best to speak with a mortgage advisor to understand these limits.

What’s the least rental income I should have for a Buy-to-Let mortgage?

Your rental income should usually be at least 125% of your mortgage repayment each month.

What’s the youngest age I can be to get a buy-to-let mortgage?

You can get a fixed-rate mortgage at any age. For a variable rate mortgage, you must be at least 18. Lenders will want to see that you can afford the mortgage payments, so they’ll look at your income and your credit history. There are government schemes, like Help to Buy, which might help too.

Can people over 70 get a buy-to-let mortgage?

Absolutely. Your age isn’t a barrier for fixed-rate mortgages. But for a variable-rate mortgage, you should apply before you’re 75. Many retired people find it hard to pay a mortgage because they live on a pension. Saving early means you’ll be more likely to afford the mortgage when you retire.

What’s the maximum age limit for getting a buy-to-let mortgage?

Most of the time, you can get a buy-to-let mortgage up to 75 years old. Some mortgage lenders might be stricter with their age limits. If retirement is near and you want a buy to let property, it’s smart to apply for a mortgage early. This way, you won’t have to worry about mortgage repayments in retirement.

If you need more info on getting your first buy-to-let mortgage, have a look at our blog. We’ve got a regular column there with tips from exclusive mortgage experts who go the extra mile to help you out. Whether it’s about the deposit source, credit history, or finding the right mortgage deal, our experienced buy-to-let mortgage brokers offer professional advice to give you complete confidence in your mortgage choice.