Retirement Advantage enhances terms of BTL equity release products

Equity-release-house-home-700.jpgRetirement Advantage has reduced rates and increased LTV ratios across its range of buy-to-let products for older landlords.

This range, launched last year, allow landlords aged 55 and over to release cash – tax-free – from their buy-to-let properties, without having to sell their investments.

The monthly interest rate on its over-55 buy-to-let lifestyle product is 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.

On its 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 increased by the same margin.

Retirement Advantage has also announced enhancements to its second home options range. These are lifetime mortgage secured against a second property.

Here, the interest rate on its ‘lifestyle’ product has been cut from 6.26 per cent to 5.99 per cent, while its voluntary select product has been cut from 6.45 per cent to 6.18 per cent. LTVs have again been increased from 27 per cent to 32 per cent ( for a 73-year old) enabling them to borrow a greater percentage of the property’s value.

Retirement Advantage’s head of product marketing Alice Watson says that there has been significant demand from advisers since the launch of these products last year.

She adds: “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 no interest to pay on the money released. This is rolled up and the total debt repaid when the property is sold.

On the voluntary select mortgage landlords can pay back up to 10 per cent of the initial loan amount each year without paying an early redemption charge.

Recommended

Home-House-Monopoly-Money-Property-700x450.jpg

Canada Life to buy Retirement Advantage

Canada Life has announced it will buy Retirement Advantage. Canada Life did not say how much it paid for the pension and equity release specialist, which has over £2bn in assets under management. The deal allows Canada Life to expand into offering equity release mortgages. The company said it also “reaffirms [Canada Life’s] commitment to […]

Equity-release-house-home-700.jpg

Retirement Advantage unveils BTL equity release products

Retirement Advantage has launched equity release products for buy-to-let properties. The products let landlords release cash from their portfolio tax free. The new ‘landlord options’ range has three products, all with no affordability checks. The ‘landlord lifestyle options’ product will pay a cash lump sum upfront, with interest rolling up for the duration of the […]

Bricks building housing construction

Lenders see increased demand for bridging development loans

Property development continues to boom, with lenders seeing a 22 per cent increase in the value of bridging development loans in the first quarter of this year. Figures from the Association of Short Term Lenders show that £386.1m of development loans were arranged in these three months, of which £242.2m were categorised as bridging loans. […]

‘How to…audit your auto-enrolment scheme compliance’

Avoid pension penalties with our auto-enrolment checklist

According to the Pensions Regulator’s annual commentary and analysis report released this month, 785 potential non-compliance cases were referred for investigation, with 23 auto-enrolment compliance notices issued. And they predict that the use of their statutory powers is only going to increase.

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments