Analysis by financial services comparison website Moneyfacts suggests that since so-called ‘pension freedom’ was introduced in the spring the number of buy-to-let products available to first-time landlords has risen by 13 per cent, up from 574 in April to 664 today.
Over the longer term this represents a 40 per cent increase on the 396 deals available two years ago, proving that the buy-to-let market is flourishing for new and old borrowers alike, with the number of BTL deals available overall (874) hitting record levels.
"With the sector lying outside of the Mortgage Market Review [undertaken last year] it is unsurprising that the number of deals has risen to an all-time high" said Charlotte Nelson, a Moneyfacts spokeswoman.
An estimated 60,000 pensioners have exercised ‘pension freedom’ - the ability to take some or all of their accumulated pension in a lump sum.
Nelson says savings rates are currently so poor, it is unsurprising that many pensioners will look elsewhere to fund retirement. But she warns that the current low rates and easy-to-process buy to let mortgages will not last indefinitely.
"With base rate likely to rise at some point in the future, it is essential for those thinking about a buy to let mortgage to secure one now.”
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'40% increase on the 396 deals available two years ago'
-If I were at that age I'd be jumping at the chance to grab some extra retirement funds with all of these new deals available. It's great that the older generation are being offered such opportunities!
This just demonstrates that the buy to let industry can appeal to all age demographics!
It's a highly profitable venture, but only when the time is taken to understand the relevant legislation, and understand that it is a long-term income, so don't expect all of the profits, fast.
This was only to be expected once the 'pension freedom' was introduced! Good on them for seeing an opportunity and running with it. At our offices we've recently witnessed a massive influx of older members of the population enquiring and becoming landlords.
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